Final answer:
The major factor in deciding who bears the risk of loss for goods during shipment between merchants is the agreement of the parties, typically laid out in the terms of sale. The correct option is b.
Step-by-step explanation:
The most important factor in deciding who bears the risk of loss between merchants when goods are destroyed during shipment is B. The agreement of the parties. This agreement includes the terms of the sale, such as FOB shipping point or FOB destination, which determine when the ownership and risk pass from the seller to the buyer.
Insurance policies are also essential as they serve as collateral as insurance against unforeseen, detrimental events. Moreover, insurance markets rely on imperfect information; they must estimate risks and determine premiums accordingly, managing the imperfect information inherent in predicting future events and individual risks.
However, aside from the agreement, other factors like insurance policies, the perishable nature of the goods, and who holds title at the time of loss also play supporting roles but are secondary to the primary terms of the agreement between the parties involved. The correct option is b.