Honoria Agreed to Sell a Shipment of Widgets to Klaus

question 18

Multiple Choice

Honoria agreed to sell a shipment of widgets to Klaus on credit.Following the terms of the contract, Honoria delivered the widgets to an independent carrier and instructed the carrier to deliver the shipment to Klaus's warehouse.Which of the following statements is TRUE?

• A)Honoria still has the authority and the ability to exercise a lien in order to retain possession of the shipment until Klaus pays the full purchase price.
• B)Honoria can exercise the right of repossession against the independent carrier if she hears a rumor that the carrier may be insolvent.
• C)If Klaus becomes bankrupt, Honoria is entitled to rely on the implied condition of solvency.
• D)If Honoria becomes insolvent while the goods are being shipped by the carrier, Klaus should exercise a lien over the widgets.
• E)If Klaus becomes insolvent while the carrier still has possession of the shipment, Honoria should exercise the right of stoppage in transit.

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Definitions:

Defensive Tactics

Strategies employed to protect oneself or an organization from criticism, competition, or other threats.

Polyphasic Activity

Polyphasic Activity refers to the distribution of sleep or other activities into multiple short periods throughout a 24-hour cycle, contrary to having one long uninterrupted period.

Flame

In online communications, a message intended to insult or provoke; or, to emit a stream of hot gas from combustion.

Kinesics

The study of how body movements and gestures serve as a form of non-verbal communication.