Newman Funding Co., located in New York City, sells rare coins by mail throughout the United States.

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Newman Funding Co., located in New York City, sells rare coins by mail throughout the United States. Preston, a resident of Sturgis, South Dakota, ordered and received several shipments of coins from Newman through the mail in response to Newman’s newspaper advertisement. The shipments were always sent “on approval” for fifteen days. Preston would keep and pay for several coins and then return to Newman fully insured those coins that he did not wish to keep. On the latest shipment of coins worth over $ 50,000 and sent on a fifteen-day approval period, Preston returned all the coins via certified mail and insured them for the maximum allowed of $ 500. Newman never received the coins. Who bears the risk of loss for these coins, Newman or Preston?
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Business Law Principles and Practices

ISBN: 978-1133586562

9th edition

Authors: Arnold J. Goldman, William D. Sigismond

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