(a) Where the contract requires or authorizes the seller to ship the goods by carrier
(1) if it does not require him to deliver them at a particular destination, the risk of loss passes to the buyer when the goods are duly delivered to the carrier even though the shipment is under reservation (§ 4-2-505); but
(2) if it does require him to deliver them at a particular destination and the goods are there duly tendered while in the possession of the carrier, the risk of loss passes to the buyer when the goods are there duly so tendered as to enable the buyer to take delivery.
(b) Where the goods are held by a bailee to be delivered without being moved, the risk of loss passes to the buyer:
(1) on his receipt of possession or control of a negotiable document of title covering the goods; or
(2) on acknowledgment by the bailee of the buyer's right to possession of the goods; or
(3) after his receipt of possession or control of a non-negotiable document of title or other directions to deliver in a record, as provided in § 4-2-503(4)(b).
(c) In any case not within subsection (1) or (2), the risk of loss passes to the buyer on his receipt of the goods if the seller is a merchant; otherwise the risk passes to the buyer on tender of delivery.
(d) The provisions of this section are subject to contrary agreement of the parties and to the provisions of this chapter on sale on approval (§ 4-2-327) and on effect of breach on risk of loss (§ 4-2-510).
History. Acts 1961, No. 185, § 2-509; A.S.A. 1947, § 85-2-509; Acts 2007, No. 342, § 16.
Structure Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 1 - Uniform Commercial Code
§ 4-2-501. Insurable interest in goods — Manner of identification of goods
§ 4-2-502. Buyer's right to goods on seller's repudiation, failure to deliver, or insolvency
§ 4-2-503. Manner of seller's tender of delivery
§ 4-2-505. Seller's shipment under reservation
§ 4-2-506. Rights of financing agency
§ 4-2-507. Effect of seller's tender — Delivery on condition
§ 4-2-508. Cure by seller of improper tender or delivery — Replacement
§ 4-2-509. Risk of loss in the absence of breach
§ 4-2-510. Effect of breach on risk of loss
§ 4-2-511. Tender of payment by buyer — Payment by check
§ 4-2-512. Payment by buyer before inspection
§ 4-2-513. Buyer's right to inspection of goods
§ 4-2-514. When documents deliverable on acceptance — When on payment