Which of the Following Statements Is True About Acceptance of Goods

question 25

Multiple Choice

Which of the following statements is true about acceptance of goods and the revocation of that acceptance?

• A) In order to reject nonconforming goods,the nonconformity must be one that substantially impairs the value of the goods to the buyer.
• B) An acceptance of goods can be revoked in any circumstance where the goods could have been rejected initially.
• C) Goods can be rejected in more circumstances than those where an acceptance of goods can be revoked.
• D) If the buyer actually saw and inspected the goods prior to acceptance,the acceptance of those goods cannot be revoked.

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Definitions:

Output Contracts

Agreements in which a seller agrees to sell all the output of a certain product to a particular buyer.

Requirements Contracts

Contracts where one party agrees to purchase all of its needs for a particular commodity from the other party for a certain period.

Common Law

A body of laws based on judicial decisions and customs, rather than statutory laws passed by a legislature.

Adequate Consideration

A fair and reasonable value exchanged in a contract, ensuring that all parties receive something of value.