Paul used the Bikes-R-Us website to purchase a racing bike. He selected the mode
ID: 354488 • Letter: P
Question
Paul used the Bikes-R-Us website to purchase a racing bike. He selected the model he wanted and provided Bike-R-Us with the necessary information to place the $2000 purchase price and the $75 shipping costs on his Visa card. The sales contract required Bikes-R-Us to ship the bike by carrier but did not require the bike's delivery to a specific destination. The bicycle was damaged during shipment when the UPS truck got into a traffic accident enroute to Paul's house. Select the best answer from the following:
Paul bears the risk of loss because risk passed to him when Bikes-R-Us delivered the bike to the carrier.
Bikes-R-Us bears the risk of loss because this is a destination contract.
Paul has to pay the contract price even though the bike arrived damaged.
Paul does not have to pay the contract price because the bike arrived damaged.
Both A & C are correct.
A.Paul bears the risk of loss because risk passed to him when Bikes-R-Us delivered the bike to the carrier.
B.Bikes-R-Us bears the risk of loss because this is a destination contract.
C.Paul has to pay the contract price even though the bike arrived damaged.
D.Paul does not have to pay the contract price because the bike arrived damaged.
E.Both A & C are correct.
Explanation / Answer
D. Paul does not have to pay the contract price because the bike arrived damaged.