Larry, a merchant seller, contracted with Simon to buy welding equipment. The contract stipulated that Larry would pick up the equipment from Simon's warehouse on the 14th day from the date of the contract
But Larry could not make the pick up on that date and before he could do so on the 15th day, the warehouse was burned down by miscreants. In this situation, who bears the risk of loss of the goods that were to be received by Larry?
A) The risk of loss lies with Larry for delaying the pick up.
B) The risk of loss lies with Simon for not protecting the goods.
C) The risk of loss is equally shared by Larry and Simon.
D) The risk of loss is shifted to the persons responsible for the fire.
B
You might also like to view...
Costs incurred subsequent to the acquisition of an asset are capitalized if they provide future benefits.
a. true b. false
Identify the disadvantage of using profit sharing plans.
A. They cannot be used to improve the organization's performance as a whole. B. The employees may develop a narrow view of their roles in the organization. C. They cost more when the organization experiences financial difficulties. D. Sharing profit with the employees ultimately reduces the organization's profitability. E. Profit sharing is not directly linked to individual behavior.