In the florist contract, who bears the risk of loss when delivery is handled by a carrier and no risk-of-loss clause exists?

• A. Florist
• B. Wholesaler
• C. Carrier
• D. Both equally

Answer: (B)

When goods are shipped by a carrier and no risk-of-loss clause is present, the default rule under the UCC is that the risk of loss passes from the seller to the buyer at the moment the goods are delivered to the carrier for shipment. In this florist contract, the florist is the seller and the wholesaler is the buyer, so once the flowers are handed over to the carrier, the wholesaler bears the risk during transit. If something happens to the flowers in transit, the loss falls on the wholesaler, not the florist, unless the contract specifies otherwise (for example, by using destination terms that make the seller bear risk until arrival).