Cey CorpEntered into a Contract to Sell Parts to Deck,Ltd

question 4

Multiple Choice

Cey Corp.entered into a contract to sell parts to Deck,Ltd.The contract provided that the goods would be shipped "FOB Cey's warehouse." Cey shipped parts different from those specified in the contract.Deck rejected the parts.A few hours after Deck informed Cey that the parts were rejected,they were destroyed by fire in Deck's warehouse.Cey believed that the parts were conforming to the contract.Which of the following statements is correct?

• A)Regardless of whether the parts were conforming,Deck will bear the loss because the contract was a shipment contract.
• B)If the parts were nonconforming,Deck had the right to reject them,but the risk of loss remained with Deck until Cey took possession of the parts.
• C)If the parts were conforming,risk of loss did not pass to Deck until a reasonable period of time after the parts were delivered to Deck.
• D)If the parts were nonconforming,Cey will bear the risk of loss,even though the contract was a shipment contract.

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Definitions:

Nonunion Firms

Companies or organizations where the workforce is not represented by a labor union, often resulting in different working conditions compared to unionized settings.

Foreign Producers

Companies or individuals located outside a given country that produce goods or services for that country's market.

Union Wages

Wages negotiated by labor unions on behalf of their members, often resulting in higher pay and better work conditions compared to non-unionized workers.

Right-To-Work Laws

Laws that prohibit union shops, the requirement that employees must join a union as a condition of employment. Each state has the option to adopt (or reject) right-to-work legislation.