Final answer:
Zoie's Electronics, Inc. bears the loss when the wrong iPhones were sent as the 'FOB Brian's warehouse' stipulation in the contract transfers risk to Zoie upon shipment. Zoie may pursue legal action for breach of contract and fraudulent misrepresentation to recover damages.
Step-by-step explanation:
In the scenario presented, Zoie's Electronics, Inc. would bear the loss due to the fact that 'FOB Brian's warehouse' (Free on Board) indicates that the responsibility and ownership of the goods would pass from Brian to Zoie once the iPhones were shipped from Brian's warehouse. Despite Brian's breach of contract by sending the wrong iPhones, the fact that the contract specified FOB means the risk of loss transferred to Zoie when the iPhones left Brian's possession. However, Zoie may have legal recourse to recover the losses due to Brian’s fraudulent action.
For instance, if Zoie's Electronics paid for what it believed were iPhone 14 units and received iPhone 13s instead, Zoie could potentially file a lawsuit for breach of contract and fraudulent misrepresentation, seeking damages for the difference in value and any other consequential damages. This situation reflects the importance of contractual obligations and the protections it should offer to the parties involved. If Brian's actions were discovered to be intentionally deceptive, similar to the way Apple was found to have altered their phones as mentioned previously, Zoie would not only be seeking a remedy for breach of contract but also possibly for fraud.