Reba orders a pair of custom-made cowboy boots, C.O.D. from Home on the Range Western Wear. When the boots arrive, Reba pays the carrier for the boots, then opens the package, only to discover that the boots are the wrong snake skin color and three sizes too big. At this point

A. Reba is entitled to inspect the goods after payment (due to the C.O.D. terms) and she can reject the boots because they are nonconforming.
B. Reba cannot revoke the acceptance, because the wrong color and size of the boots are not substantial impairments.
C. Home on the Range can allege that Reba did not conduct a proper inspection; therefore, Home on the Range owes Reba nothing.
D. Reba has no recourse; she should have known to inspect the goods before paying the C.O.D. amount.


Answer: A

Business

You might also like to view...

Gerald discovered that one of his employees has filed a fraudulent expense claim. What is the best advice for Gerald to deliver the bad news to this employee tactfully, professionally, and safely?

A) Gerald should prepare and rehearse what he will say. B) Gerald should go alone to the meeting with the employee so that no one else knows about the episode. C) Gerald should meet with the employee on a Friday afternoon so that they can both go home right after. D) Gerald should do all of these.

Business

If a project's _____ exceeds the firm's weighted average cost of capital (WACC), its net present value (NPV) will be positive.

A. marginal cost of capital B. incremental operating cash flows C. inflation premium D. internal rate of return (IRR) E. initial investment outlay

Business

A company uses the effective interest method to amortize a bond premium. Which of the following statements is true regarding the carrying value of the bond?

A. The carrying value will decrease by smaller amounts each year. B. The carrying value will decrease by equal amounts each year. C. The carrying value will decrease by larger amounts each year. D. The carrying value will be lower than the face value of the bond until maturity.

Business

According to the information provided in Table 12-2, which presents a queuing problem solution, on average, how many units are in the line?

A) 5.455 B) 3.788 C) 1.091 D) 0.758 E) 0.833

Business