A Contract Between Kwik Import Company in Los Angeles and Macro

question 12

Essay

A contract between Kwik Import Company in Los Angeles and Macro Retail Corporation in New York does not expressly state which party bears the risk of loss but says only that Kwik is "to ship goods at the seller's expense." At what point does the risk of loss of the goods pass from the seller to the buyer?

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Definitions:

Accounting System

The system of recording and summarizing business transactions and analyzing, verifying, and reporting the results.

Processing Methods

Various techniques or approaches used in the handling, preparation, or processing of materials or data.

Computerized Accounting System

An accounting information system that processes financial transactions and events as per GAAP (Generally Accepted Accounting Principles) using computer software.

Systems Design

The process of defining the architecture, components, interfaces, and data for a system to satisfy specified requirements.