Graders info signal will lose on both claims

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Intermediate Accounting: Reporting and Analysis
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Chapter 9 / Exercise 9-4
Intermediate Accounting: Reporting and Analysis
Jones/Wahlen
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Graders Info : Signal will lose on both claims. Acceptance of the goods by a buyer takes place when the buyer either signifies that the goods are conforming after inspection or fails to reject after a reasonable time for inspection or acts inconsistently with the seller's ownership. Once the goods are accepted, the buyer loses the right to revoke acceptance of nonconforming goods unless acceptance was based on a reasonable assurance that the goods were conforming. In this case, although Tuner accepted the goods, it did so on Signal's assurance that the sets were in perfect condition. Thus, on discovery of the damaged sets, Tuner can revoke acceptance on the basis of substantial impairment of value. In addition, although the contract called for payment on delivery, no method of payment was specified. Therefore, tender of payment is sufficient if it is by any means currently used in the ordinary course of business-a check is such a means. Signal does have a right to demand cash but must give Tuner a reasonable extension of time in which to procure the cash. Thus, Signal's claim of Tuner's breach for nonpayment on delivery is not valid.
144. Stella bought a cup of coffee at the Roasted Bean Drive-Thru. The coffee had been heated to 190 degrees and consequently had dissolved the inside of the cup. When Stella lifted the lid, the cup collapsed, spilling the contents on her lap. To recover for third-degree burns on her thighs, Stella filed a suit against the Roasted Bean. Can Stella recover for breach of warranty? Explain.
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Intermediate Accounting: Reporting and Analysis
The document you are viewing contains questions related to this textbook.
Chapter 9 / Exercise 9-4
Intermediate Accounting: Reporting and Analysis
Jones/Wahlen
Expert Verified

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