Marcie orders a dress for $1,000. Marcie doesn't inspect the dress on arrival and therefore doesn't discover a flaw in the fabric until the day before she is to wear it to her first board meeting as president of Tri-State Engineering. This is a week after the dress arrived. She calls the designer and sends the dress back, but it is lost in the mail. Marcie's insurance would cover $400 of the
loss. The designer's insurance would cover $900. Who is liable?
A) Marcie will bear the whole loss because she failed to inspect the goods.
B) The designer will bear the whole loss because Marcie returned the nonconforming goods.
C) Marcie will owe $100; the designer, $900.
D) Marcie's insurance will cover the first $400, and the remainder of the loss is borne by the designer.
D
You might also like to view...
FDA regulations do not apply to the labeling of food packages.
Answer the following statement true (T) or false (F)
Which of the following is not a reason for the issuance of long-term liabilities?
A) Debt financing offers an income tax advantage. B) Debt financing dilutes ownership interest. C) Debt may be the only available source of funds. D) Debt financing may have a lower cost.
One of the six Cs of effective communication is complexity
Indicate whether the statement is true or false
What are the three main purposes of the federal Bankruptcy Code?