A is an online store that carries both new and antique jewelry. B primarily focuses on the repair of antique watches, although he sometimes sells watches through direct email advertisements to regular customers, such as A. One day, B sent A an email advertisement that inadvertently included a very rare antique watch that C had left with B for repair (when dropping off the watch, C mentioned to B that he would like to find a similar one for his identical twin brother, D). A called B on the telephone and said that he would take the advertised watch at the advertised price of $500, and that he would pick it up the following day. B verbally agreed to those terms and sent a confirmation to A via email immediately upon concluding their discussion. Upon receiving B's confirmation, A posted the watch on its website and, as things would have it, he shortly thereafter received an offer from C, who was ecstatic at having found a matching watch for D. A responded to C's offer by promising to ship the watch via UPS the following day (no mention was made by either A or C about who would be responsible for the cost of shipping the watch). C then called D on his cell phone to pass along the good news, and D agreed to buy the watch for $600, which he immediately transferred to C via electronic banking. A drove to B's store and took possession of the watch the first thing the next morning, and then left it with UPS for delivery to C. Unfortunately, the watch was destroyed in transit (and only one block from C's home) when the UPS truck caught on fire as a result of an electrical problem in the engine compartment
Explain how UCC Art. 2 would apply to these facts from the perspectives of A, B, C and D in terms of:
1. The legal relationships between A and B, A and C, B and C, and C and D;
2. The identification of goods to a contract, the passage of title, and the passage of the risk of loss;
3. The effect of the watch's destruction on the parties; and
4. The application of the statute of frauds.