The shipping term points to the buyer; six miswired machines point back. AC502's Unit 5 sales contract analysis lets section 2-510 decide, keeping all forty at the seller's risk. Searches like "ac 502 unit 5 assignment example", "ac502 unit 5 sample" and "ac502 unit 5 example" land here.
What a finished AC502 Unit 5 sales contract analysis looks like
About four pages, opening on the purchase order's key terms and a short timeline. The order covers forty undercounter ice machines at 115 volts, shipped FOB the manufacturer's plant by a carrier the manufacturer selects. The plant loads forty units on December 30, and six are 208-volt models. On December 31 the trailer overturns, and nothing is salvageable. Analysis begins with the default rule for shipment contracts under section 2-509: risk passes to the buyer when conforming goods are duly delivered to the carrier. It then applies section 2-510, under which a tender nonconforming enough to give a right of rejection leaves risk with the seller until cure or acceptance. A closing section separates title from risk and explains which company carries the casualty loss at December 31.
How a AC502 Unit 5 example is structured
Rules precede facts at every step. The paper first classifies the contract, since FOB shipping point makes it a shipment contract rather than a destination one, and states what that term would ordinarily do. It then asks whether the tender conformed. The perfect tender rule in section 2-601 gives the buyer a right to reject when goods fail to conform in any respect, and six wrong-voltage units in a single forty-unit delivery meet that standard. Because a right of rejection existed, section 2-510 keeps the risk on the seller, and the paper explains why the better reading reaches all forty machines rather than only the six. Cure is addressed next: the loss came before the seller could offer conforming units. Title comes last: it can pass at shipment under section 2-401 while risk stays behind.
What the order said
Forty 115-volt undercounter ice machines, FOB the manufacturer's plant, carrier chosen by the seller, and no clause allocating risk any other way.
Shipment contract, default rule
Under section 2-509, risk would pass to the wholesaler once conforming goods were duly delivered to the carrier on December 30.
Six machines, whole tender
Perfect tender gives a right to reject the entire delivery, which triggers section 2-510 and keeps the risk with the seller.
Nothing left to cure
The overturned trailer ended any chance of substituting conforming units before the loss, so risk never shifted to the buyer.
Title and risk at year end
Title may pass at shipment while risk stays behind, and the paper says which company carries the casualty loss on December 31.
Where marks go in AC502 Unit 5
The FOB term is the bait, and papers that stop at it hand the loss to the wholesaler without asking whether the tender conformed. Graders reward the second step, section 2-510, and deduct when it is applied to the six miswired machines alone with no explanation of why the right to reject covered the whole delivery. Invoking substantial impairment, the standard for installment contracts, in a single-delivery case costs precision. Treating title and risk as one concept misses the year-end point an accounting audience cares about, since the two can sit with different companies on December 31. Cure is often argued as if the seller could still perform, when destroyed goods leave nothing to cure before the loss. Papers that turn to damages before settling risk answer the wrong question.
Get a AC502 Unit 5 example written to your instructions
Describe the Unit 5 transaction, its delivery term, what shipped and what went wrong, and add the rubric. The analysis classifies the contract, tests conformity and settles who carried the risk at the moment of loss, reaching you in 24-48h. The first custom sample is free, and the wholesaler and manufacturer in it are made up.
AC502 Unit 5 questions, answered
Why does a buyer-side delivery term leave the loss with the seller?
Because the term governs conforming goods. Section 2-510 overrides the ordinary shipment rule when the seller's tender gives the buyer a right to reject, keeping the risk on the seller until cure or acceptance. Six wrong-voltage machines gave that right here. The example states the default rule first, then shows exactly where the nonconformity displaces it.
Would the answer differ if only one machine were miswired?
Under the perfect tender rule, probably not, since a single-delivery contract permits rejection for any nonconformity, subject to good faith and the seller's right to cure. In an installment contract the buyer would need substantial impairment. The example notes that contrast in a sentence, because scenarios in this unit sometimes split one delivery into several.
Does FOB mean the same thing under Incoterms?
Not exactly. The Incoterms FOB rule is a maritime term tied to loading goods on board a vessel, while the code's FOB shipping point covers delivery to any carrier. Contracts sometimes mix the two. The example applies the code because the order cites no Incoterms rule, and it flags that a contract adopting Incoterms would be read under those definitions.