In non-carrier delivery, when does the buyer obtain possession if the seller is a merchant?

• A. Upon tender by the seller
• B. Upon actual possession by the buyer if the seller is a merchant
• C. Upon delivery to the carrier
• D. Upon payment

Answer: (B)

In non-carrier delivery, who has possession depends on the seller’s status as a merchant. When the seller is a merchant, mere tender of delivery isn’t enough to transfer possession. The buyer only acquires actual possession once they physically take possession of the goods. Tender is just offering to deliver and make the goods available; for a merchant, the transfer of possession happens at the moment the buyer actually takes the goods into their hands. That’s why possession occurs upon actual possession by the buyer in this scenario.

Delivery to a carrier relates to shipments, not non-carrier delivery, so it doesn’t apply here. Payment doesn’t by itself transfer possession either; possession is tied to actual taking of the goods.