What Was the Result on Appeal in Figgie International Inc

question 52

Multiple Choice

What was the result on appeal in Figgie International Inc., v. Destileria Serralles Inc., the case in the text involving a dispute over bottle-labeling equipment that did not perform as expected and whether usage of trade limited the buyer's remedy to repair, replacement, or return?

• A) The court ruled that the remedy of repair, replacement, or a refund failed of its essential purpose and that the buyer was therefore not limited to that remedy.
• B) The court ruled that the remedy of repair, replacement, or a refund did not fail of its essential purpose, and the remedy was enforced.
• C) The remedy of repair, replacement, or a refund was found unconscionable and not enforced.
• D) The remedy of repair, replacement, or a refund was found unconscionable but enforced anyway.
• E) The remedy of repair, replacement, or a refund was not enforced because usage of trade may not supplement a contract.

---

Definitions:

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, increasing the number of shares owned by shareholders.

Prepaid Insurance

The portion of insurance premiums that has been paid in advance and is recognized as an asset on the balance sheet until the coverage period elapses.

Depreciable Lives

The estimated period over which a tangible asset is expected to be usable by a business, affecting its depreciation calculation.

Insurance Expense

The cost associated with purchasing insurance policies, recognized as an expense by businesses over the period the insurance coverage is applicable.