Community Hospital in Atlanta Entered into a Contract to Buy

question 30

Multiple Choice

Community Hospital in Atlanta entered into a contract to buy delicate lab equipment from D & D Company in Denver.The contract states shipping terms as FOB,Denver.While in transit the equipment was damaged beyond repair by the carrier,Fly-by-Nite Air Lines.The carrier is in weak financial condition and refused to pay for the equipment.In this case:

• A) D & D Company must replace the equipment at no cost to the hospital.
• B) Community Hospital has risk of loss.
• C) D & D Company and Community Hospital will share the loss equally.
• D) risk of loss will depend on which party chose Fly-by-Nite as the carrier.

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Definitions:

Epidemiological Studies

Research investigations that assess the distribution and determinants of health and disease conditions in specific populations.

Psychological Disorders

Mental health conditions characterized by alterations in thinking, mood, or behavior associated with distress and/or impaired functioning.

Prevalence Rates

The proportion of a population found to have a condition at a specific time.

Phobia

An extreme or irrational fear or aversion to something, significantly impacting a person’s ability to function.