Risk of Loss
Analyze Business Case 21-6, “Risk of Loss,” (Attached). Then, prepare a professional-caliber brief on the case.
Based on the case information provided:
- State the facts of the case and the key issues.
- Cite the code or statute provisions applicable to the case.
- Determine which party in the transaction is liable for the loss, and explain your reasoning.
- Express your main points, arguments, concepts, and information coherently and logically.
To support your brief:
- Explain when risk of loss passes from seller to buyer, as determined under the provisions of the UCC.
- Explain when a purchaser has an insurable interest in purchased goods, as determined under the provisions of the UCC.
RISK OF LOSS ADDITIONAL REQUIREMENTS
- Cover page: Include your name, the assignment number, and the assignment or case title.
- Length: 1–2 double-spaced pages, not including the cover page.
- Font and font size: Times New Roman, 12-point.
- APA formatting: Format resources and citations according to current APA guidelines.
21–6. Risk of Loss.
Ethicon, Inc., a pharmaceutical company, entered into an agreement with UPS Supply Chain Solutions, Inc., to transport pharmaceuticals. Under a con- tract with a UPS subsidiary, Worldwide Dedicated Services, Inc., (WDS), the drivers were provided by International Management Services Co. (IMSCO).
During the transport of a shipment from Ethicon’s facility in Texas to buyers “F.O.B.Tennessee,” one of the trucks collided with a concrete barrier near Little Rock, Arkansas, and caught fire, damaging the goods. Who was liable for the loss? Why? [Royal & Sun Alliance Insurance, PLC v. International Management Services Co., 703 F.3d 604 (2d Cir. 2013)] (See Risk of Loss.)
Risk of Loss