Fred Has 100 Tons of Stone in a Warehouse

Multiple Choice

Fred has 100 tons of stone in a warehouse.Barney agrees to purchase the stone from Fred.The contract states that Barney will pick up the stone directly from the warehouse.Fred delivers a warehouse receipt for the 100 tons of stone to Barney.Before Barney is able to pick up the stone,a tornado sweeps through and destroys the stone.Who has the risk of loss?

A) Fred has the risk of loss because Barney did not pick the stone yet.
B) The warehouse has the risk of loss because Barney did not pick the stone yet.
C) The risk of loss was passed to Barney when he received the warehouse receipt.
D) Fred, the warehouse, and Barney are equally responsible for the risk of loss.