Under the Sales Article of the UCC, which of the following statements is correct regarding risk of loss and title to the goods under a sale or return contract?
a.
Title and risk of loss rest with the buyer until the goods are returned to the seller.
b.
Title and risk of loss are shared equally between the buyer and the seller.
c.
Title and risk of loss remain with the seller until the buyer pays for the goods.
d.
Title remains with the seller until the buyer approves or accepts the goods, but risk of loss passes to the buyer immediately following delivery of the goods to the buyer.
Choice "A" is correct. In a sale or return, the buyer has title and risk of loss unless and until the goods are returned to the seller.
Choices "b", "d", and "c" are incorrect, per the above.
