Goods are sitting in a merchant's warehouse awaiting collection and are destroyed. Under the code, the risk of loss stays with the:
AMunicipality
BMessenger
CMerchant
DManufacturer
Answer & Solution
Correct answer: C. Merchant
1. Risk follows possession rather than payment here.
2. The buyer has not yet taken the goods.
3. So the risk of loss remains with the merchant.
_Source: OpenStax Business Law I Essentials 2e, Chapters 7 and 8, Contract Law and Sales Contracts._
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