Books used Saylor Advanced Business Law and the Legal Enviro

Book(s) used: Saylor: Advanced Business Law and the Legal Environment (ch. 8-10)

Saylor: The Legal and Ethical Environment of Business

Outdoor Wonder Land, Inc. (OWL) a theme restaurant contracted with Blue Lagoon Aquariums, Inc. (BLA) for the purchase of a “fully installed 96” x 60” x 48” aquarium” for the price of $37,000. The price included all labor and parts but the order form was not itemized. The freight carrier hired by the manufacturer delivered the pool to the parking lot just outside the building occupied by OWL. A receptionist for OWL signed the delivery invoice and immediately called BLA. When the installation crew for BLA arrived five days later to install the aquarium, it was gone.

In this situation, had the risk of loss of the whirlpool passed from BLA to OWL? Why or Why not?

Solution

In this particular case, the order form was not itemized i.e there was no specifications laid out in the order form document regarding the details.

However the order form has the words - \"fully installed\" - written on it. BLA was responsible for giving OWL a fully installed 96” x 60” x 48” aquarium. By delivering the aquarium at the parking lot, BLA has not fulfilled its obligation of handing OWL a fully installed aquarium. The aquarium remains the responsibility of BLA until it is installed at the premises of OWL.

So, in this case, the risk of loss was not passed from BLA to OWL.