What Is the Effect of a Buyer's Failure to Comply

question 117

Multiple Choice

What is the effect of a buyer's failure to comply with the statute of limitations recognized by the Uniform Commercial Code for a breach of contract action?

• A)The buyer waives his or her warranty rights under the contract.
• B)There is no effect if the buyer can establish that he or she was not aware of the statute of limitations.
• C)It operates as a waiver of the buyer's warranty rights,but only if the seller can establish by a preponderance of the evidence that the buyer had actual knowledge of the statute of limitations.
• D)It results in the buyer only having the right to sue the seller for injunctive relief,not damages.
• E)It results in the buyer only having the right to sue the seller for damages,not injunctive relief.

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Definitions:

Credit Memo

A document issued by a seller to a buyer, reducing the amount that the buyer owes due to a return or refund.

Credit for Returns

A reduction in sales revenue that occurs when customers return previously purchased products.

Discount Period

The timeframe during which a discount is available or the period between the receipt of a bill and its payment due date when a discount may be taken.

Full Settlement

A financial arrangement where a debtor pays a lump sum that is less than the total amount owed to fully settle the outstanding debt.