Community Hospital in Atlanta Entered into a Contract to Buy

Multiple Choice

Community Hospital in Atlanta entered into a contract to buy delicate lab equipment from D & D Company in Denver.The contract states shipping terms as FOB,Denver.While in transit the equipment was damaged beyond repair by the carrier,Fly-by-Nite Air Lines.The carrier is in weak financial condition and refused to pay for the equipment.In this case:

A) D & D Company must replace the equipment at no cost to the hospital.
B) Community Hospital has risk of loss.
C) D & D Company and Community Hospital will share the loss equally.
D) risk of loss will depend on which party chose Fly-by-Nite as the carrier.