Question

In: Operations Management

Which of the following is not a duty imposed by the Code on a seller who...

Which of the following is not a duty imposed by the Code on a seller who makes a non-conforming tender?

The seller must reimburse the buyer for the costs of inspecting the goods.

The seller must pay for the costs of returning the goods.

The seller must bear the risk of loss for the goods during their return.

The seller must make another tender of conforming goods within 10 days.

Solutions

Expert Solution

Answer- The seller must make another tender of conforming goods within 10 days.

Explanation- under the Uniform Commercial Code, the seller may ‘cure’ or rectify the non-confirming tender with confirming goods anytime before the time for performance and it is not restricted within 10 days.

Tender is delivery of goods. A seller delivers the buyer the goods that confirms to the contract. Failure on part of the seller to deliver non-confirming goods, the buyer may accept the entire shipment, reject the entire shipment or accept parts of the units of shipment. However, the seller can ‘cure’ the goods within the stipulated time. For example, if the seller delivers non-confirming goods on 5th June and the actual due date to deliver goods is July 10th, then the seller still has time to deliver confirming goods before July 10th.


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