Marcie Orders a Dress for $1,000

question 33

Multiple Choice

Marcie orders a dress for $1,000.Marcie doesn't inspect the dress on arrival and therefore doesn't discover a flaw in the fabric until the day before she is to wear it to her first board meeting as president of Tri-State Engineering.This is a week after the dress arrived.She calls the designer and sends the dress back,but it is lost in the mail.Marcie's insurance would cover $400 of the loss.The designer's insurance would cover $900.Who is liable?

• A) Marcie will bear the whole loss because she failed to inspect the goods.
• B) The designer will bear the whole loss because Marcie returned the nonconforming goods.
• C) Marcie will owe $100;the designer,$900.
• D) Marcie's insurance will cover the first $400,and the remainder of the loss is borne by the designer.

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