Question

Lulu orders 20 pairs of navy blue pants from Peter for $4,000.

In receipt of 20 pairs of sky blue pants, Lulu begins offering the pants for sale in her store. After a few days, when no one buys the pants, Lulu ships them back to Peter, claiming that the pants aren't the color that was specified in the contract and claiming that Peter needs to ship her conforming goods. Peter claims he doesn't have to do anything and that Lulu owes him $4,000. Which of the following statements is true?
a. Peter must ship to Lulu 20 pairs of navy blue pants
b. Lulu owes Peter $4,000 because she accepted the pants
c. Lulu owes Peter nothing because she hasn't accepted the pants until she either pays or signifies that the pants conform to the requirements of the contract
d. Lulu owes Peter $4,000 because the pants approximate what was required under the contract

Answer 1

The correct statement is c. Lulu owes Peter nothing because she hasn't accepted the pants until she either pays or signifies that the pants conform to the requirements of the contract.

Step-by-step explanation:

The correct statement in this situation is c. Lulu owes Peter nothing because she hasn't accepted the pants until she either pays or signifies that the pants conform to the requirements of the contract.

In this case, Lulu ordered 20 pairs of navy blue pants from Peter, but received 20 pairs of sky blue pants instead. Lulu has the right to reject the pants because they do not conform to the specifications of the contract. Since Lulu has not accepted the pants, she does not owe Peter any money.

Lulu can return the pants to Peter and request that he provide her with the correct merchandise or a refund. Until the issue is resolved, Lulu is not obligated to pay for the incorrect pants.