Question

NuStores' buyer accepts a shipment of DVD players from seller Open-Ur-Eyes Video, Inc. NuStores later discovers a defect in the players, revokes acceptance, and returns the players via Playback, Inc. During the return, the players are lost. The loss is suffered by...

Answer 1

Answer:

Open-Ur-Eyes only

Explanation:

Risk of loss refers to who bears the risk in case the goods under sales transaction which are shipped, get destroyed without the sale having been completed and without buyer having accepted the title of goods.

It refers to who pays for such a loss when goods in transit get either destroyed or lost, without any of the parties being at fault.

As per uniform commercial code, the buyer shall bear such a loss, unless the loss arises out of seller's negligence or an act of omission.

In the given case, the buyer i.e NuStores accepted shipment of dvd players from seller i.e Ope- Ur- Eyes and later upon receipt, found such players to be defective. The buyer cancelled the sale and agreed to return the players. While in transit, the players were lost.

Under such a circumstance, had the seller shipped products without any defect, the buyer would've borne the loss.

But the products were defective owing to sellers negligence due to which they had to be returned. Thus, in such a case, the loss shall be borne by the seller i.e Open-Ur-Eyes only.