Sophia __ bus law M2.pdf - Score 20/21 You passed this...

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UNIT 2 — MILESTONE 2 Score 20/21 You passed this Milestone 20 questions were answered correctly . 1 question was answered incorrectly . 1 Cynthia orders 100 blue shirts for her screenprinting business from Juan, a shirt supplier. When Cynthia receives the shirts, she discovers that Juan has sent her a batch of pink shirts. She rightfully rejects delivery, and the shirts are shipped back to Juan. Because of the delay in receiving the blue shirts, Cynthia is unable to fill a large order and loses $500 in sales. What remedy does Cynthia have in this scenario? Cynthia may either replevy the shirts or sue Juan for specific performance. Since she rejected the delivery, Cynthia has no recourse in this scenario except for a refund of the price she paid for the shirts. Cynthia must fulfill the contract by paying for the blue shirts when they finally arrive, but she is entitled to recover damages relating to her business losses in the meantime. Cynthia can cancel the contract with Juan and recover in full what she paid for the shirts, as well as sue for damages since she suffered a loss directly related to the non-delivery. CONCEPT Buyer's Remedies Under the Uniform Commercial Code 2 Contracts allow a free society to __________. plan an orderly progression to capitalism
ensure economic equality among its members engage in efficient economic exchanges do away with the need for law CONCEPT General Perspectives on Contracts 3 In which scenario would strict liability most likely apply? A dishwasher fails to fully clean the dishes. A car's radio sometimes stops working. An airplane's brakes fail in freezing weather. A lightbulb burns out prematurely. CONCEPT Strict Liability 4 Andy is driving a 20-year-old boat that he borrowed from a friend. While he's on the water, the steering system fails and the boat crashes. Subsequent investigation shows that the steering system failed as a result of corrosion. Andy sues the boat manufacturer for negligence. How strong is his negligence case against the product manufacturer? Weak, because he does not have privity of contract, since he was borrowing his friend's boat. Strong, because proximate cause between the corroded steering system and the crash is easy to establish.
Strong, because there is no evidence that Andy's own actions contributed to the damages. Weak, unless he can show that the corrosion was the result of a design defect rather than normal wear and tear on a 20-year-old boat. CONCEPT Negligent Products Liability 5 An example of foreseeable damages from a faulty repair of your car that led to an accident would be __________. additional hotel and travel charges that you incurred, because you missed your flight that day as a result of the accident your loss of one year's wages from a job, since you were fired that day for being late after the accident your loss of a winning lottery ticket that blew away in the wind during the accident the cost to repair your vehicle, as well as all damage to other vehicles involved in the accident CONCEPT Limitations on Contract Remedies 6

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