Beck Inc., a food processing company in Chicago, placed a phone order with Gary, a vineyard owner in California, for a certain quantity of perishable products. The shipping term was "CIF" with payment to be made on delivery. Gary contracted with a carrier to deliver the goods to Beck Inc. However, he neglected to ship the goods under refrigeration. The goods were loaded on a non-refrigerated boxcar and as a result the product was spoiled when it reached Chicago. Under these circumstances, ________.
A. Gary bears the risk of loss because, under a CIF shipment, the seller bears the expense and the risk of loading the goods
B. Beck Inc. bears the risk of loss because, under a CIF shipment, the buyer has to bear all risks
C. neither Gary nor Beck Inc. bears the risk of loss as the goods are insured
D. Beck Inc. bears the risk of loss as the contract did not mention that Gary will guarantee their delivery
Answer: A
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