Multistate Bar Examination Practice Question

TechSupply Inc. and GlobalRetail enter into a contract for the sale of 200 smartphones with delivery terms FOB destination. During transit, the delivery truck is involved in an accident, and the smartphones are destroyed. Who bears the risk of loss for the damaged smartphones?

  • TechSupply Inc. bears the risk of loss until the smartphones reach GlobalRetail's location.

  • The buyer bears the risk of loss once they accept the shipment.

  • TechSupply Inc. bears the risk of loss after notifying the buyer of the shipment.

  • The buyer bears the risk of loss once the seller has handed the smartphones to the carrier.

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