Wei Wei, Ltd

question 10

Multiple Choice

Wei Wei, Ltd., a Chinese firm, delivers the first commercial unit of a two-unit shipment of headphones to Sonic Boom, a U.S.firm.Sonic accepts the goods, but later discovers that they are nonconforming.To revoke acceptance of the unit under the Convention on Contracts for the International Sale of Goods, Sonic

• A)can sue immediately, claiming that Wei Wei fundamentally breached the contract.
• B)must notify Wei Wei and return the goods before Sonic can sue.
• C)must prove that the nonconformity of the first unit impaired the value of the whole lot.
• D)must prove that Sonic assumed the nonconformity would be cured and it has not been cured.

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Definitions:

Collusion

A secret agreement between two or more parties for a deceitful, illegal, or fraudulent purpose to deceive others.

Prescribed Controls

Specific procedures and policies implemented by a company to safeguard its assets, ensure accurate financial reporting, and comply with laws and regulations.

Petty Cash Fund

A small amount of cash on hand used for paying expenses too small to merit writing a check.

Bank Checking Account

A bank account that allows for easy access to funds through checks, debit cards, and electronic transfers, used for managing daily transactions.