Parker ordered 50 cartons of soap from Riddle Wholesale Company. Each carton contained 12 packages of soap.

Question:

Parker ordered 50 cartons of soap from Riddle Wholesale Company. Each

carton contained 12 packages of soap. The terms were: $8.00 per carton 2/10,

net/30, FOB buyer’s delivery platform, delivery June 1. During transit

approximately one-half the packages were damaged by the carrier. The delivery

was made on May 28. Answer the following with “Yes” or “No.”

a. Riddle had the risk of loss during transit.

b. If Parker elects to accept the undamaged part of the shipment, he will be

deemed to have accepted the entire shipment.

c. To validly reject the goods, Parker must give timely notice of rejection to

Riddle within a reasonable time after delivery.

d. If Riddle were notified of the rejection on May 28, Riddle could cure the

defect by promptly notifying Parker of intention to do so and making a

second delivery to Parker of conforming goods by June 1.

e. The statute of frauds is inapplicable to the transaction in the facts given.

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Anderson's Business Law And The Legal Environment

ISBN: 9780324638189

20th Edition

Authors: David P Twomey, Marianne M Jennings, Ivan Fox

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