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Sophia unit 2 business law milestone.

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Sophia unit 2 business law milestone.

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You passed this Milestone
20 questions were answered correctly.
UNIT 2 — MILESTONE 2
1 question was answered incorrectly.
1

Cynthia orders 100 blue shirts for her screenprinting business from Juan, a shirt supplier. When Cynthia
receives the shirts, she discovers that Juan has sent her a batch of pink shirts. She rightfully rejects delivery,
and the shirts are shipped back to Juan. Because of the delay in receiving the blue shirts, Cynthia is unable to
fill a large order and loses $500 in sales.

What remedy does Cynthia have in this scenario?



Cynthia may either replevy the shirts or sue Juan for specific performance.



Since she rejected the delivery, Cynthia has no recourse in this scenario except for a refund of the price
she paid for the shirts.



Cynthia must fulfill the contract by paying for the blue shirts when they finally arrive, but she is
entitled to recover damages relating to her business losses in the meantime.



Cynthia can cancel the contract with Juan and recover in full what she paid for the shirts, as well as sue
for damages since she suffered a loss directly related to the non-delivery.

CONCEPT
Buyer's Remedies Under the Uniform Commercial Code
2

Contracts allow a free society to __________.



plan an orderly progression to capitalism

, ensure economic equality among its members



engage in efficient economic exchanges



do away with the need for law

CONCEPT
General Perspectives on Contracts
3

In which scenario would strict liability most likely apply?



A dishwasher fails to fully clean the dishes.



A car's radio sometimes stops working.



An airplane's brakes fail in freezing weather.



A lightbulb burns out prematurely.

CONCEPT
Strict Liability
4

Andy is driving a 20-year-old boat that he borrowed from a friend. While he's on the water, the steering
system fails and the boat crashes. Subsequent investigation shows that the steering system failed as a result
of corrosion. Andy sues the boat manufacturer for negligence.

How strong is his negligence case against the product manufacturer?



Weak, because he does not have privity of contract, since he was borrowing his friend's boat.



Strong, because proximate cause between the corroded steering system and the crash is easy to
establish.

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