Question

Mix Clothing shipped 300 custom suits to Tara Retailers. The suits arrived on Thursday, earlier than Tara had anticipated and on an exceptionally busy day for its receiving department. They were perfunctorily examined and sent to a nearby warehouse for storage until needed. On the following day, upon closer examination, it was discovered that the quality of the linings of the suits was inferior to that specified in the sales contract. Which of the following is true insofar as Tara's rights are concerned?

A. Tara had no rights if the linings were of merchantable quality.
B. Tara must retain the suits because it accepted them and had an opportunity to inspect them upon delivery.
C. Tara's only course of action is rescission.
D. Tara can reject the suits upon subsequent discovery of the defects.

Answer 1

Law dictates that Tara Retailers retains the right to reject the suits due to the discovery of inferior quality linings that were not apparent upon first inspection. This right is granted under the UCC's provisions for revoking acceptance when defects substantially impair value and were not initially detected.

Step-by-step explanation:

The subject of this question is related to law, focusing on contract law and the rights of a buyer after receiving goods that do not meet the specified quality requirements in the sales contract. When Tara Retailers received the suits with linings of inferior quality, they still retained several rights despite initially accepting them. The statement that Tara can reject the suits upon subsequent discovery of the defects is true according to the Uniform Commercial Code (UCC) which governs such transactions in many regions. The UCC allows buyers to revoke acceptance of goods if the defects substantially impair the value of the goods and the defects were not discovered upon a reasonable initial inspection. Therefore, Tara Retailers likely has the right to reject the suits or demand corrective action under the contract.