Jack, a merchant, Buyer, had contracted with Sophia, a merchant, Seller, to purchase cartons of full paint cans. The contract stipulated that Jack would send a tractor-trailer to pick up the cans from Sophia's warehouse on December 1st. On Thanksgiving Day, the warehouse burns to the ground. Who bears the risk of loss for the goods that were to be picked up by Jack? Why?

1. The risk of loss lies with Jack.
2. The risk of loss lies with Sophia.
3. The risk of loss lies with the arsonists.
4. The risk of loss is shared equally by Jack and Sophia.

Bob steals a valuable watch from Sandy and sells it to Mike's Jewelers. Mike's Jewelers does not know it's stolen. Sandy finds out and sues Mike's Jewelers to reclaim his watch. Will the court allow Sandy to reclaim the watch? Why or why not? 

Answer rating: 100% (QA)

Risk of Loss in the Paint Can Scenario The risk of loss in this scenario lies with Sophia the seller Heres why Specific goods identified The contract ... View the full answer