First Principles of Business Law
Quiz: Remedies for breach of contract

Question 18

 

 

 

A buys a sailboat, which has been stored in B’s garage for 10 years, from B for $5000.    A takes delivery of the boat, cleans it up and repaints it, and then tows it to a nearby bay.  When he launches the boat, everything seems alright for a few hours, but then A notices that the boat is taking on water from somewhere below the waterline.  It turns out that there are some almost invisible cracks around the keel, which open and close as the boat flexes while sailing.  In these circumstances, which of the following statement is incorrect?

(a)  When goods bought and sold suffer from defects that are discoverable at the time of sale by a reasonable inspection, the goods are considered to have been bought and sold in the condition they are, including the defects, and cannot be rejected because of the defects.

(b)  When goods bought and sold suffer from defects that are not discoverable at the time of the sale by a reasonable inspection but which later become obvious when the goods are used, the buyer has a reasonable time in which to reject those goods after discovering the defects.

(c)   When goods bought and sold suffer from defects that are not able to be discovered at the time of the sale by a reasonable inspection but which later become obvious when the goods are used, it is too late for the buyer to reject the goods who carries the risk of such defects.

 

 

 

 

 

 

 
 
 

 

 

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