Asked by Aleya Smith on Apr 27, 2024
Verified
Frieda purchased a large desk at a garage sale. She asked the seller if she could leave the desk at the side of the road so she could go home and get her pickup truck. When she returned, she found that the desk had been struck by a car and demolished. Can Frieda get her money back?
A) Yes, because the risk of loss does not transfer until she takes possession.
B) Yes, because the seller allowed Frieda to leave the goods until she takes possession.
C) Yes, because the goods were not tendered until she takes possession.
D) No, because the desk was available for Frieda to take when she purchased it and thus she bore the risk of loss.
E) No, because, even though the desk was available for Frieda to take when she purchased it, the risk of loss does not transfer until delivery.
Risk Of Loss
The liability for the potential loss or damage to goods during transportation or storage.
Garage Sale
A casual event typically held at a person's home where used goods such as household items are sold.
Pickup Truck
A vehicle with an enclosed cab and an open cargo area with low sides and tailgate.
- Discern the approaches for gauging and overseeing loss risk in sales interactions.
Verified Answer
MA
Mohamad Al-KadriApr 29, 2024
Final Answer :
D
Explanation :
The risk of loss in a situation where the buyer has made the purchase and the goods are available for them to take possession immediately transfers to the buyer. Since Frieda had completed the purchase and the desk was available for her to take, she assumed the risk of loss once the sale was finalized, even though she had not physically taken the desk with her yet.
Learning Objectives
- Discern the approaches for gauging and overseeing loss risk in sales interactions.