Fact Pattern 20-B1 (Questions B16-B18 Apply)

question 38

Multiple Choice

Fact Pattern 20-B1 (Questions B16-B18 apply)
Ripe Produce, Inc., and Southeast Asian Bistro & Market enter into a contract for the delivery of locally grown fruits and vegetables. The parties use a standard Ripe Produce form that contains some of the terms the parties agree on but not others. Some of the produce spoils before it can be cooked, served, and eaten, or sold. Southeast Asian refuses to pay for the spoiled goods.
-Refer to Fact Pattern 20-B1. Ripe Produce responds that it did not waive payment for spoiled goods in the parties' previous transaction. Ripe Produce is arguing that the court should take into account

• A) the course of dealing.
• B) the course of performance.
• C) the usage of trade.
• D) a rule of construction.

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Definitions:

Defect Unexpectedly

A situation where a flaw or imperfection in a product or system appears without warning.

Warning Defect

A failure in a product to adequately instruct or inform users of potential risks or hazards, rendering it dangerous.

Manufacturer

An entity or individual that produces goods or products from raw materials through the use of labor, machinery, and equipment.

Obvious Risks

Hazards or dangers that are clear and recognizable to a reasonable person without the need for explicit warning.