In a recent thread on this bulletin board some inaccurate information was given about who is responsible when items are lost or damaged in shipment. I thought I was aware of the laws in this matter and I verified with a lawyer that what I am saying is accurate.

1) Unless otherwise specified, it is the seller's responsibility for items that are lost or damaged in shipment.

2) Both parities may be agree to other terms. For example, in an eBay auction the seller may state: "Shipping is the buyer's responsibility. Insurance is optional but recommended. If the buyer declines insurance, the item ships at the buyer's risk." This would make the buyer responsible for the item if it were lost or damaged in shipment.

3) When you make a bid on ebay, you are agreeing to the seller's conditions and if you are the high bidder, there is an enforceable contract.

It is possible that in some jurisdictions there are local laws that may take precedent. But that would be very unusual as these are very basic laws of the UCC - the Uniform Commercial Code.

The reason that I am writing this is that another individual stated that there was no reason to ever take insurance, you are protecting the seller not yourself. That is just a false statement. I don't want disputes to occur down the road based on that inaccurate statement. If the seller states that the buyer is responsible for insurance, the buyer is responsible. Period. If insurance is declined and the item is lost or damaged, the buyer is out of luck, not the seller.

Finally, what would happen in a trade? Both parties are buyer and seller. Unless otherwise stated, if one party did not receive an item, the other party would be responsible. In a trade, since generally each party pays for shipping their own items, each party should insure their package if they want to be protected for loss or damage.

And really finally, it is always best to state the shipping terms while a deal is being made. This way both parties have a clear understanding about who is paying for shipping and who is responsible for loss or damage.