Eberhard Manufacturing Company sold goods to Brown Industrial Sales Company without agreeing on who would bear the risk of loss. The contract contained no f.o.b. terms.
Eberhard placed the goods on board a common carrier with instructions to deliver them to Brown. The goods were lost in transit. Who suffered the loss, Eberhard or Brown? Why?
Eberhard Mfg. Co. v. Brown, 232 N.W.2d 378 (MI)