Asked by hannah mazzeo on Jul 19, 2024
Verified
On May 1,S sells B 100 widgets on credit at a price of $1 per widget.S did so based on an April 10 letter from B asserting B's solvency.On May 7,B learns that S was insolvent when it received the widgets on May 1.On May 13,S demands the return of the goods from B.Is B obligated to return the goods to S?
Buyer's Obligation
A purchaser's duty to pay the agreed price for goods or services and to comply with the terms of the contract of purchase.
Credit Sale
A transaction where goods or services are provided in exchange for a promise to pay at a later date.
- Grasp the legal entitlements of customers in situations involving flawed items and the importance of rapid intervention.
Verified Answer
JL
Jahmela LawrenceJul 24, 2024
Final Answer :
Yes.Although S did not demand the goods within ten days of their receipt,as required by UCC section 2-702(2),this requirement does not apply in cases where the buyer has made a written misrepresentation of solvency within three months of the goods' delivery.
Learning Objectives
- Grasp the legal entitlements of customers in situations involving flawed items and the importance of rapid intervention.