On May 1,S Sells B 100 Widgets on Credit at a Price

question 27

Essay

On May 1,S sells B 100 widgets on credit at a price of $1 per widget.S did so based on an April 10 letter from B asserting B's solvency.On May 7,B learns that S was insolvent when it received the widgets on May 1.On May 13,S demands the return of the goods from B.Is B obligated to return the goods to S?
Yes.Although S did not demand the goods within ten days of their receipt,as required by UCC section 2-702(2),this requirement does not apply in cases where the buyer has made a written misrepresentation of solvency within three months of the goods' delivery.

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Definitions:

Rights Dispute

A disagreement or conflict regarding the entitlements or privileges of parties, often requiring legal intervention to resolve.

Interest Dispute

A conflict arising when parties disagree over substantive issues such as terms of employment, salary, or working conditions.

Collective Bargaining Legislation

Laws that govern the negotiating process between employers and groups of employees aimed at reaching agreements that regulate working conditions.

Unfair Labour Practice

Actions by employers or unions that violate the rights of employees or the collective bargaining agreement.