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:

Statement of Members' Equity

A financial document showing the changes in the equity of a company over a specific period due to various factors like earnings and withdrawals.

Dissolution

The process of legally dissolving a corporation or partnership, involving the cessation of its business operations and the distribution of its assets.

General Partnership

A business structure where two or more individuals share ownership, responsibilities, profits, and liabilities.

Mutual Agency

A legal principle in partnerships where each partner has the authority to bind the partnership (and other partners) in contracts related to the business's usual operations.