Detailed Answer
(d) The UCC places risk of loss on the breaching party.
Since Cey shipped nonconforming goods, it breached the contract
and would have risk of loss until the nonconforming goods
were accepted by the buyer or until the goods were cured by Cey.
Since Deck rejected the goods and Cey did not cure the goods,
risk of loss remained with Cey. Shipping terms have no bearing
on risk of loss in this situation because the goods did not conform
to the contract. Answer (a) is incorrect because Deck would only
bear risk of loss if the goods conformed to the contract. An872
swer (b) is incorrect because the risk of loss was never transferred
to Deck since the goods were nonconforming. Answer (c) is
incorrect because if the goods were conforming, risk of loss
would pass to Deck at Cey’s warehouse based on the shipping
terms “FOB Cey’s warehouse.â€