Asked by
Diamond Medina
on Dec 20, 2024
Verified
Mary orders a dress for $1,000. The designer sends the wrong size. Mary doesn't inspect the dress on arrival and therefore doesn't discover the nonconformity until the day before she is to wear it to her first board meeting as president of Tri-State Engineering. She calls the designer and sends the dress back, but it is lost in the mail. Mary's insurance would cover $400 of the loss. The designer's insurance would cover $900. Who is liable?
A) Mary will bear the whole loss because she accepted the goods.
B) The designer will bear the whole loss because Mary returned the nonconforming goods.
C) Mary will owe $100, the designer $900.
D) The risk is Mary's to the extent of $400.
Nonconformity
A term used to describe a situation where goods delivered under a contract do not meet the specifications or expectations outlined in the agreement.
Liable
Liable means being legally responsible for an action or outcome, often involving the obligation to make restitution or compensation.
- Understand the principles of liability and risk of loss in sales transactions.
Verified Answer
KH
Learning Objectives
- Understand the principles of liability and risk of loss in sales transactions.