Under 2-711 of the UCC,a Buyer Has a Remedy Called

question 62

Multiple Choice

Under 2-711 of the UCC,a buyer has a remedy called "cover".What is cover and when can it be used?

• A) Cover applies when conforming goods are rejected by the buyer, giving him the right to cancel the contract and buy better goods elsewhere with reimbursement for any extra costs.
• B) Cover applies when nonconforming goods are delivered to the buyer, giving him the right to cancel the contract and buy the goods elsewhere with reimbursement for any extra costs.
• C) Cover is a SELLER's right and does not apply to the buyer.
• D) Cover allows a buyer to cancel the contract after the shipment is delayed for 30 days, and recover direct damages from the seller.

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Definitions:

Receivables Period

The receivables period is the average amount of time it takes for a company to receive payments owed by its customers for goods or services sold on credit.

Payables Period

The length of time a company takes to pay its invoices to suppliers, reflecting its payment policy's efficiency.

Accounts Receivable Balance

The sum total of debts customers have towards a company for delivered goods or services which have not been paid for yet.

Wholesale Cost

The price charged for a product by the wholesaler, which is typically lower than the retail price.