Sale or return. If the goods are sold to the buyer for resale rather than for use, with the understanding that they may be returned, the risk of loss is on the buyer until they're returned. Sale on approval. If the goods are sold to a buyer primarily for its own use rather than for resale and the agreement calls for a sale on approval, the risk of loss shifts to the buyer when the buyer accepts the goods. Failure to notify the seller within a reasonable amount of time of rejection of the goods is deemed to be acceptance.
Goods fail to conform.
When delivered goods fail to conform to the requirements of the agreement, the risk of loss remains on the seller until the nonconformity is cured or the nonconforming goods are accepted by the buyer. Buyer revokes acceptance. If the buyer repudiates the agreement before title to the goods passes to it, the seller may treat the risk of loss as having rested on the buyer for a commercially reasonable time. However, the buyer's liability is limited to the extent of any deficiency in the seller's insurance coverage. When the goods tendered fail to conform to the agreement to an extent that the buyer would be entitled to reject the tender of delivery, the risk of loss remains on the seller until it has cured the defect or the buyer has accepted the goods.