2. Risk of Loss.

Facts: Harold Shook agreed with Graybar Electric Co. to purchasethree reels of burial cable for use in Shook’s construction work.When the reels were delivered, each carton was marked “burialcable,” although two of the reels were in fact aerial ca­ble. Shookaccepted the conforming reel of cable and notified Graybar that hewas reject­ing the two reels of aerial cable. Because of atrucker’s strike, Shook was unsuccessful in ar­ranging for thereturn of the reels to Graybar. He stored the reels in awell-lighted space near a grocery store owner’s dwelling, which wasclose to his work site. About four months later, he noticed thatone of the reels had been stolen. On the following day he no­tifiedGraybar of the loss and, worried about the safety of the secondreel, arranged to have it transported to a garage for storage.Before the second reel could be transferred, however, it was alsostolen, and Shook notified Graybar of the second theft. Graybarsued Shook for the purchase price, claiming that Shook had agreedto return to Graybar the nonconforming reels and had failed to doso. Shook contended that he had agreed only to contact a truckingcompany to return the reels and that, because he had con­tactedthree trucking firms to no avail (owing to the strike), hisobligation had been ful­filled.

ISSUE: Discuss who bears the risk of loss for the stolenreels.

RESOLUTION: [Graybar Electric Company v. Shook, 195 S.E.2d 514(NC, 1973)] How did the court answer the questions? What did thecourt decide?

EXPLANATION-Do you agree with the court? Why or why not? Can youchange any facts to give a different result?