Funston, a retailer, shipped goods worth $600 to a customer by using a common carrier. The contract used by the common carrier, and agreed to by Funston, limited liability to $100 unless a higher fee is paid. Funston did not pay the higher fee. The goods were shipped FOB destination point and were destroyed in transit due to a flash flood. Which of the following is correct?

a. Funston will suffer a loss of $500.

b. Funston will suffer a loss of $600.

c. Funston’s customer will suffer a loss of $500.

d. Funston’s customer will suffer a loss of $600.