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UNIT 2 — MILESTONE 2Score20/21You passed this Milestone20 questions were answered correctly.1 question was answered incorrectly.1Cynthia orders 100 blue shirts for her screenprinting business from Juan, a shirt supplier. When Cynthiareceives 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 tofill 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 priceshe paid for the shirts.Cynthia must fulfill the contract by paying for the blue shirts when they finally arrive, but she isentitled 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 suefor damages since she suffered a loss directly related to the non-delivery.CONCEPTBuyer's Remedies Under the Uniform Commercial Code 2Contracts allow a free society to __________.plan an orderly progression to capitalism
ensure economic equality among its membersengage in efficient economic exchangesdo away with the need for lawCONCEPTGeneral Perspectives on Contracts 3In 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.CONCEPTStrict Liability 4Andy is driving a 20-year-old boat that he borrowed from a friend. While he's on the water, the steeringsystem fails and the boat crashes. Subsequent investigation shows that the steering system failed as a resultof 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 toestablish.
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 wearand tear on a 20-year-old boat.CONCEPTNegligent Products Liability 5An 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 aresult of the accidentyour loss of one year's wages from a job, since you were fired that day for being late after the accidentyour loss of a winning lottery ticket that blew away in the wind during the accidentthe cost to repair your vehicle, as well as all damage to other vehicles involved in the accidentCONCEPTLimitations on Contract Remedies 6