[Scuba Supplies] the Dive Shop Ordered Ten Mega2000 Diving Tanks

question 86

Multiple Choice

[Scuba Supplies] The Dive Shop ordered ten Mega2000 Diving Tanks, ten SuperSlick wetsuits, and ten pairs of Awesome swim fins from ScubaCo under a destination contract. The tanks were scheduled to be delivered first, and the remaining items would arrive the following day. Upon the first delivery, The Dive Shop noticed that ScubaCo sent ten Mega500 Diving Tanks, an inferior model. The Dive Shop's owner called ScubaCo and was told that ScubaCo had sold out of the Mega2000 model, but the Mega500 was the same price, was "pretty much the same", and The Dive Shop had to pay for the order or it would be in breach of contract. The following day, ScubaCo checked the remainder of the order which consisted of the wetsuits and fins and verified it to be correct. It delivered the remainder of the order, however, The Dive Shop refused delivery. On the way to its next delivery, the carrier truck ran off the side of the road and the goods were lost.
-Who bears the risk of loss for the second delivery?

• A) The Dive Shop, because the risk of loss transferred to the buyer on delivery.
• B) The Dive Shop, because they had no right to refuse delivery of conforming goods.
• C) Both parties share the risk of loss equally.
• D) ScubaCo because in a destination contract, the risk remains with the seller.
• E) ScubaCo because it had previously delivered nonconforming goods.

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