Issue who bears the risk of loss holding although

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possession of the new truck, which Melland’s refuses to give. Issue : Who bears the risk of loss? Holding : Although Martin was able to attain the new truck, he had to also bear the losses. Rule of Law : The concept of title is obliterated under the UCC if a document of title has been passed to the buyer. The party who owns the trade-in is also considered the seller. The seller who keeps possession should not be considered bailee. Since Martin isn’t a merchant, it is necessary to determine if Martin tendered delivery of the trade-in unit to Melland’s. 1. Stein must bear the loss, because he is the merchant, and the goods were not received by Beal but only tendered. 2. Title belongs to Regan, since the goods were only tendered but not possessed. The risk of loss can be divided amongst the two, since there had been an absence of a breach.
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3. Since it was a trial sale, both title and risk for loss remain with the seller until the buyer approves, or accepts the goods. Therefore, Crane bares the loss. 4. A) Clark is liable for the loss of the cases. B) Brown is liable. C) Clark would then be liable again. 5. A) Gardner still owns the corn. Since the fire came before Gardner saw Bassett’s acceptance, there was no arrangement for an exchange. B) If Gardner were a merchant, he would be entitled to compensate Bassett.
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