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CalAttorney2, Attorney
Category: Legal
Satisfied Customers: 10244
Experience:  Civil litigation attorney for individuals and businesses.
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Customer: Jackson a Jacksr in Pennsylvania, shipped a truckload of peaches from his orchard to mels fruit inc in la using a independent. Trucking company. While attempting to make a store delivery the truck ran into some mechanical problems. Peaches went bad. The term of the contract was agreed upon were F.O.B
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Submitted: 1 year ago.
Category: Legal
Expert:  CalAttorney2 replied 1 year ago.

Dear Customer,
Thank you for using our forum. My name is ***** ***** I hope to assist you today.

This issue requires an interpretation of UCC Section 2-509, which generally places the risk of loss on the buyer once the seller delivers the goods to a carrier.

However, the terms of your contract are going to be controlling over the UCC provisions, so if the F.O.B. provision says that the goods are "F.O.B. at Destination" then the seller carries the risk of loss all the way to the destination, and is liable for the loss incurred in transit.

On the other hand, if it is "F.O.B. at Shipment" the seller was only responsible for delivering the fruit to the carrier and once they did so, the buyer assumed all risk of loss (just as in the UCC provision).

In both cases, the common carrier is going to be responsible for the loss, it is only a matter of which party is going to be forced to pursue the carrier for the loss (the seller or the buyer).