Mistakenly ships racks of the wrong size and color

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Pharaoh Jewelry orders display racks from ABC, Inc. ABC mistakenly ships racks of the wrong size and color, which Pharaoh Jewelry rejects and returns to ABC via UPS. During the return shipment, the racks are stolen. Between Pharaoh and ABC who suffers the loss? Why? PLEASE EXPLAIN IN DETAIL.

Reference no: EM131372103

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