[calicpa]

If a contract for the sale of goods includes a C&F shipping term and the seller has fulfilled all of its obligations, the

Title to the goods will pass to the buyer when the goods are received by the buyer at the place of destination.

Risk of loss will pass to the buyer upon delivery of the goods to the carrier.

Buyer retains the right to inspect the goods prior to making payment.

Seller must obtain an insurance policy at its own expense for the buyer’s benefit.

Answer is B. B is correct, but isn’t C also correct? I thought only in C.O.D. buyer doesn’t have rights to inspect goods.

C) Unless otherwise agreed and subject to the provisions of division (C) of section 1302.34 of the Revised Code, the buyer is not entitled to inspect the goods before payment of the price when the contract provides:

(1) for delivery “C.O.D.” or on other like terms; or

(2) for payment against documents of title, except where such payment is due only after the goods are to become available for inspection.

BEC - 84, 4/6/13
AUD - 77, 5/28/13
REG - 83, 4/12/14
FAR - 83, 10/3/13

Ethics - 90% 4/24/13

150 unit education requirement met!
Work experience met!

[KADFC]

From how I look at it, title has already been passed. Risk of Loss is passed before it even reaches the destination, thus right of inspection is not relevant isn't it? Cash on Delivery is not the same as Cost and Freight…

FAR - 62 (10/2/13), 50 (5/30/14)
AUD - 73 (10/30/13), 66 (5/6/14)
REG - 69 (4/8/14)
BEC - 66 (2/27/13), 73 (4/21/14)

[KADFC]

From how I look at it, title has already been passed. Risk of Loss is passed before it even reaches the destination, thus right of inspection is not relevant isn't it? Cash on Delivery is not the same as Cost and Freight…

FAR - 62 (10/2/13), 50 (5/30/14)
AUD - 73 (10/30/13), 66 (5/6/14)
REG - 69 (4/8/14)
BEC - 66 (2/27/13), 73 (4/21/14)

[Author]

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