A is corrent because under the UCC, in the case of a sale or return contract, risk of loss and title pass to the buyer according to the shipping terms of the contract. Thus, generally the risk of loss and ownership will be with the buyer while the goods are in the buyer’s possession.
B is incorrect because under the UCC, in the case of a sale or return contract, risk of loss and title pass to the buyer according to the shipping terms of the contract. Thus, generally the risk of loss and ownership will be with the buyer while the goods are in the buyer’s possession.
C is incorrect because the buyer may use or resell the goods delivered pursuant to a sale or return contract. Normally in a sale or return the buyer is purchasing the goods for the purpose of reselling them.
D is incorrect since all expenses incurred in returning the goods purchased pursuant to a sale or return contract are the buyer’s responsibility.
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