Under UCC 2, risk of loss is primarily determined by which factor?

• A. Contract provisions
• B. The weather at the time of shipment
• C. The seller’s annual revenue
• D. The buyer’s credit score

Answer: (A)

Risk of loss in a sale of goods under the UCC is determined by what the parties have agreed in their contract. The contract can allocate who bears the risk and when it passes, and those terms control. If the contract says nothing about risk of loss, the UCC provides default rules, but the starting point is the contract provisions themselves. Weather, the seller’s revenue, or the buyer’s credit score do not decide who bears the risk. Weather is irrelevant to the allocation, revenue is about financials, and credit score affects financing or performance, not risk of loss under the contract terms.