Fulfillment: California Court Clarifies Rule on Cataloger Fees

Under a shipment contract, if I’m the seller, I take your order and give it to a common carrier like the U.S. Postal Service to deliver the item to you. Under a shipment contract, the title and risk of loss changes to the buyer when I give the good to the common carrier (as long as I select a reasonable common carrier). The mail order industry operates under the assumption that once it delivers a good to a common carrier, the item belongs to the buyer. Accountants, auditors, banks and others consider the good to have been sold and title and risk of loss transferred to the buyer.