Question

Bruce, a buyer, contracted with Steve, a seller, to buy ten dozen bicycle tires for $960. Payment was due thirty days after delivery. When the tires arrived they were found to be non-conforming to the contract, and Bruce rejected the shipment after inspection. Bruce still has the tires and is required to:________a. Sell the tires to someone else to recover the damage caused by the non-conformity.b. Hold the tires with reasonable care for disposition as the seller instructs.c. Accept the tires and sue for damages for the non-conformity.d. Send the tires back to the seller.e.return the tires to the carrier that brought them.

Answer 1

Answer:

b. Hold the tires with reasonable care for disposition as the seller instructs.

Explanation:

When goods are non-conforming to contract, the buyer has the right to reject the goods. The seller also has the right to cure the defect or ensure conformity.

1. Buyer's right to reject: In this case the buyer has the right to reject the goods on inspection, and notify the seller within a reasonable amount of time.

2. Seller's right to cure: The seller has the right to cure defect on the goods, and this can be done where there is still time to rectify the defects noticed by the buyer. In this case, the buyer is not due to pay for the goods for the next 30 days.

The seller still has the opportunity to meet the contract standard and close the deal.

So option b is correct. The buyer holds the goods pending decision of seller to either cure defects on goods or retrieve the goods.