Asked by Genelyn Silva on Jun 11, 2024
Verified
Assuming Adler must bear the risk of loss of his sculpture, if he sues the ship to recover damages, would the lawsuit likely be dismissed?
A) No, because Adler had an insurable and special interest and, thus, has standing to sue.
B) No, because the ship was not at fault.
C) Yes, because Adler bears the risk of loss according to his contract with Juno.
D) Yes, because Adler did not have an insurance interest in the sculpture.
E) Yes, because the ship was not a party to the contract.
Insurable Interest
A requirement for purchasing insurance, indicating the policyholder has a stake in the continued existence of the insured item or person that is subject to potential financial loss.
Risk Of Loss
Refers to the concept in commerce regarding which party bears the liability for goods damaged or destroyed during transportation or storage.
- Unravel the processes involved in estimating and moderating risk in sales contracts.
- Investigate the outcomes of shipping risks on products and the responsibilities assigned to the contracting parties.
Verified Answer
DS
Donna ShepherdJun 16, 2024
Final Answer :
A
Explanation :
Adler had an insurable and special interest in the sculpture, which gives him the standing to sue for its loss, regardless of the specific terms of his contract with Juno or the insurance status.
Learning Objectives
- Unravel the processes involved in estimating and moderating risk in sales contracts.
- Investigate the outcomes of shipping risks on products and the responsibilities assigned to the contracting parties.