What are the possible results of the dispute?

Ned’s Grocery Stores is located in California. Ned’s contracts to buy 500 bushels of apples from Washington’s Best Apple Orchards on September 4, 2010. Th e total price for the apples is $10,000. Ned’s pays a deposit of $2,000 for Orchards’ to process the shipment. Th e shipment is brought to the shipping carrier in Seattle on September 1, 2010. Th e apples are loaded in a container aboard the Carolina ship. While in transition, the ship is destroyed by a fi re. Nothing on the ship survives. Washington’s Best sends a letter explaining what happened regarding the incident. Ned’s wants the return of its $2,000 deposit and the replacement of apples. Washington’s Best states that Ned’s is responsible for the shipment. What are the possible results of the dispute? What law applies to the transaction and why?

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