Detailed Answer
(a) In this situation, since Wool is not a merchant seller,
the risk of loss passed to Bond on Wool’s tender of delivery. If
Wool had been a merchant seller, then the risk of loss would not
have passed until the buyer received the goods. Answers (c)
and (d) are incorrect because the risk of loss passed when the
nonmerchant seller (Wool) tendered delivery of the painting.
Answer (b) is incorrect because the risk of loss would not pass at
the time the contract was formed since the seller still had possession
of the painting and had not attempted to deliver it to the
buyer.