what is the proper protocol

"as soon as it was reasonably determined the item was lost"

I'd agree with that too - it should take no more than a week or so to file a claim and have the shipping company admit that it is lost and start a search. In the case I described, I was able to have fedex redirect the package to a new address after it was found (over a month and many phone later) so the ability to redirect the lost package (at least at fedex) should provide protection for the seller and allow for a much quicker refund to the buyer.

Bdgregory,

You missed the first part of my response ("unless otherwise agreed to"). I guarantee that if you litigate the matter, a majority of courts will conclude that the buyer bears the risk.

NT

Bdgregory,

The contract between seller and common carrier and the contract between seller and buyer are two different contracts.

Just because the seller agrees with the carrier that he bears risk of loss as it relates to their contract, he does not necessarily agree that he bears risk of loss in the contract with the buyer.

Viridian

May be you should read the FAQ more carefully before you comment. There is a big difference between "should" and "must". "Should" is aspirational but not required, "must" is required.

Audiogon "customary practice" won't help anyone in a dispute. You must look to the laws of the state. And in almost all states, the buyer bears the risk of loss unless agreed to otherwise.