Bill Orders a Custom-Made Suit from Rooks to Be Delivered

question 27

Multiple Choice

Bill orders a custom-made suit from Rooks to be delivered by Friday at 5 p.m.When the suit is delivered to his office on Friday afternoon, he is in conference with a client.He accepts delivery and hangs the suit in his closet.When Bill tries on the suit Saturday evening, he discovers that the pants are cuffed.He had ordered cuffless trousers.What can he do?

• A) He can reject the goods since he had not yet accepted them prior to inspection.
• B) He cannot reject the goods because the cuffs are curable.
• C) He cannot revoke acceptance since the cuffs are not difficult to discover.
• D) He can revoke acceptance if the cuffs substantially impair the value of the goods to him and Rooks will not remove the cuffs.

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Definitions:

Unit Selling Price

The cost that a customer pays per unit of product purchased.

Total Cost Method

An accounting method used for handling inventory, where the cost of goods sold is determined by adding purchase costs less the ending inventory.

Total Cost Method

An accounting approach where all costs of production, including variable and fixed, are used to value inventory and determine cost of goods sold.

Government Agencies

Public sector organizations established at federal, state, or local levels to administer specific functions and services on behalf of the government.