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Brown contracted to buy sixty cases of Lovely Brand canned corn from Smith, a Toledo seller, at a contract price of $600. Based on the contract, Smith selected and set aside sixty cases of Lovely Brand canned corn and tagged them ‘‘For Brown.'' The contract required Smith to ship the corn to Brown via T Railroad, F.O.B. Toledo. Before Smith delivered the corn to the railroad, the sixty cases were stolen from Smith's warehouse.
a. Who is liable for the loss of the sixty cases of corn, Brown or Smith?
b. Suppose Smith had delivered the corn to the railroad in Toledo. After the corn was loaded on a freight car but before the train left the yard, the car was broken open and its contents, including the corn, were stolen. Who is liable for the loss, Brown or Smith?
c. Would your answer in Question 4(b) be the same if this contract were F.O.B. Brown's warehouse, and all other facts remained the same?
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