1. Beck Inc., a food processing company in Chicago, placed a phone order with Gary, a vineyard owner in California, for a certain quantity of perishable products. The shipping term was "CIF" with payment to be made on delivery. Gary contracted with a carrier to deliver the goods to Beck Inc. However, he neglected to ship the goods under refrigeration. The goods were loaded on a non-refrigerated boxcar and as a result the product was spoiled when it reached Chicago. Under these circumstances, _____.
A. neither Gary nor Beck Inc. bears the risk of loss as the goods are insured
B. Beck Inc. bears the risk of loss because, under a CIF shipment, the buyer has to bear all risks
C. Beck Inc. bears the risk of loss as the contract did not mention that Gary will guarantee their delivery
D. Gary bears the risk of loss because, under a CIF shipment, the seller bears the expense and the risk of loading the goods
2. Jane gave her car for maintenance to Bell Corp., a company that deals in used cars and maintenance of cars. One of the employees at Bell Corp. accidentally sold Jane's car to Fiona. Under these circumstances, which of the following statements is correct?
A. Jane cannot recover the car from Fiona because under the Uniform Commercial Code, Bell Corp. could give good title to a buyer in the ordinary course of business.
B. Jane can recover the car from Fiona because Bell Corp. did not have ownership to the car when it was sold to Fiona.
C. Jane can recover the value of the car from Fiona or Bell Corp. because neither Bell Corp. nor Fiona had title to the car.
D. Jane cannot recover the value of the car from Bell Corp. because she is a nonmerchant.