What does the UCC say about risk of loss after delivery?

The Uniform Commercial Code (UCC) establishes specific guidelines regarding the risk of loss in commercial transactions. According to the UCC, once the goods are delivered to the buyer, the buyer assumes the risk of loss. This means that if the goods are damaged or lost after they have been delivered, the responsibility falls on the buyer rather than the seller.

In commercial transactions, delivery typically signifies that the seller has fulfilled their obligation concerning the goods, and thus the buyer must now bear the risks associated with those goods. This approach encourages buyers to thoroughly inspect goods upon delivery and to obtain appropriate insurance if necessary to protect against potential damages or losses.

The other options do not accurately reflect the principles established by the UCC regarding risk of loss after delivery. For instance, retaining risk until payment is received implies that the seller continues to be responsible for the goods regardless of their delivery status, which is not correct. Similarly, the notion of shared risk or an unrestricted right for the buyer to return goods at any time do not align with the UCC’s guidelines on risk management in commercial transactions.