BUSINESS LAW -Bibbeon Manufacturing shipped 300 designer navy blue blazers

QUESTION

Bibbeon Manufacturing shipped 300 designer navy blue blazers to Custom Clothing Emporium. The blazers arrived on Friday, earlier than Custom had anticipated and on an exceptionally busy day for its receiving department. They were perfunctorily (not very thoroughly) examined and sent to a nearby warehouse for storage until needed. On the following Monday, upon closer examination, it was discovered that the quality of the blazer linings was inferior to that specified in the contract. Which of the following is correct insofar as Custom’s rights? (a) Custom can reject the blazers upon subsequent discovery of the defects; (b) Custom must retain the blazers since it accepted them and had an opportunity to inspect them upon delivery; (c) Custom’s only course of action is rescission; or (d) Custom had no rights if the linings were of merchantable quality.

ANSWER:

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