The Uniform Commercial Code states that if goods are held by a merchant seller, the risk of loss passes to the buyer when she takes physical possession of the goods.

The Uniform Commercial Code states that if goods are held by a merchant seller, the risk of loss passes to the buyer when she takes physical possession of the goods. If goods are held by a non-merchant seller, on the other hand, risk of loss passes to the buyer when the seller tenders the goods to the buyer. Briefly explain why merchant sellers bear the risk of loss longer than non-merchant sellers.

Expert Solution

Under the UCC law seller who is a merchant are kept at higher standard of duty and care of goods and they bear the risk till the time goods are delivered to customers and confirmed. A merchant is deemed to have higher level of knowledge of product, its care practice and selling and shipment practices than a non-merchant sellers therefore law is more stricter for merchant seller and they bear the loss or risk for longer period than the non-merchant seller.

A merchant seller is governed by UCC code and it becomes the sellers (merchant) duty to arrange for common carrier and delivery of good to the customer. while non-merchant seller are not governed by the same rule as the merchant seller and rules are little liberal for non merchant seller as they are deemed to have less knowledge and skill for selling practices of products.

Under the UCC risk of loss does not pass only with transfer of title, in case of merchant it has to be delivered and confirmed by buyer. In case of non merchant sales customers are supposed to take delivery as soon as the non merchant tender the goods to customer and therefore they are not liable for any loss or risk further.

keosha answered 2 years ago

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