s 1-3 are based on the following fact situation. Johnston bought 100 pounds of Egyptian cotton, No.1 quality, from McHugh. The sales contract provided that Johnston would make payment prior to inspection. The cotton was shipped, and Johnston paid McHugh. Upon inspection, however, Johnston discovered that the cotton was actually Egyptian No. 2 quality. Johnston thereupon tendered back the cotton to McHugh and demanded return of his payment. McHugh refused on the ground that there is no difference between No.1 quality Egyptian cotton and No. 2 quality Egyptian cotton. 1. Which of the following statements regarding the contract provision for preinspection payment is correct? (A) It constitutes an acceptance of the goods. (B) It constitutes a waiver of the buyer's remedy of private sale in the case of nonconforming goods. (C) It does not impair a buyer's right of inspection or his remedies. (D) It is invalid. 2. What is Johnston's remedy because the cotton was nonconforming? (A) Specific performance. (B) Damages measured by the difference between the value of the goods delivered and the value of conforming goods. (C) Damages measured by the price paid plus the difference between the contract price and the cost of buying substitute goods. (D) None, since he waived his remedies by agreeing to pay before inspection. 3. Can Johnston resell the cotton? (A) Yes, in a private sale. (B) Yes, in a private sale but only after giving McHugh reasonable notice of his intention to resell. (C) Yes, but only at a public sale. (D) No