Chapter 20 - Title and Risk Case Problem

Read the Spray-Tek v. Robbins case.

Look at the whiteboard  and then the screencast for help in understanding this case.

additional information

Read the Spray-Tek v. Robbins case (scholar.google.com/scholar_case?case=3318130585245043393&q).

Then answer the following question

Would the result have been different if the contract between Spray-Tech and Niro had specified F.O.B. Bethelem, Pennsylvania"? Explain


also by making it FOB Bethlehem, the place of the purchaser it would make it a destination contract . 

See rules on Destination contracts, and then read the case and see that Plaintiff Spray Tech won, and how a FOB destination clause would have changed the results - explain why defendant would win in the event


here are the rules

SHIPMENT AND DESTINATION CONTRACTS
If the parties do not expressly agree to when and under what conditions title passes, it passes at
the time and place at which the seller delivers the goods [UCC 2–401(2)], according to the delivery
terms. Under a shipment contract, title passes at the time and place of shipment. Under a
destination contract, title passes when goods are tendered at the destination.

Contracts dealing with goods to be shipped often include an FOB clause, which stands for "free on board". This means that the goods will be shipped to a specific place without cost. The FOB terms are an important part of the purchase contract. The FOB terms describe:

• who selects the carrier
• who pays the freight charges
• who has title to the goods during shipment

FOB clauses may be stated as either FOB Destination, FOB Origin, or FOB Shipping point. FOB Destination is the standard and most common FOB term used by buyers. The seller is the owner of goods while in transit and is responsible for any loss or damage up to the time of delivery. Other ways of expressing the FOB Destination are "FOB Destination Name".

Less often, a buyer will use the shipping term FOB Origin or FOB Shipping point. FOB Origin is usually used when the price of shipping is negotiated separately from the price of the goods, such as when the item to be shipped is extremely large or heavy. Sometimes a buyer will use FOB Origin when they have all of their shipping to be done by a specific carrier with they had negotiated favorable pricing, terms and conditions.

The following is an excerpt from a state statute dealing with F.O.B. clauses:

"(1) Unless otherwise agreed the term F.O.B. (which means "free on board") at a named place, even though used only in connection with the stated price, is a delivery term under which:

1. When the term is F.O.B. the place of shipment, the seller must at that place ship the goods in the manner provided in this article (Section 7-2-504) and bear the expense and risk of putting them into the possession of the carrier; or
2. When the term is F.O.B. the place of destination, the seller must at his own expense and risk transport the goods to that place and there tender delivery of them in the manner provided in this article (Section 7-2-503);
3. When under either (a) or (b) the term is also F.O.B. vessel, car or other vehicle, the seller must in addition at his own expense and risk load the goods on board. If the term is F.O.B. vessel the buyer must name the vessel and in an appropriate case the seller must comply with the provisions of this article on the form of bill of lading (Section 7-2-323)."

Additional Contracts FOB Resources
View Contracts Forms - Download Contract Forms in Minutes.
Learn more at contracts.USLegal.com - More Contract Information.

Then answer the following question

Would the result have been different if the contract between Spray-Tech and Niro had specified F.O.B.  Bethelem, Pennsylvania"? Explain.