Marcie orders a dress for $1,000.Marcie doesn't inspect the dress on arrival and therefore doesn't discover a flaw in the fabric until the day before she is to wear it to her first board meeting as president of Tri-State Engineering.This is a week after the dress arrived.She calls the designer and sends the dress back,but it is lost in the mail.Marcie's insurance would cover $400 of the loss.The designer's insurance would cover $900.Who is liable?
A) Marcie will bear the whole loss because she failed to inspect the goods.
B) The designer will bear the whole loss because Marcie returned the nonconforming goods.
C) Marcie will owe $100;the designer,$900.
D) Marcie's insurance will cover the first $400,and the remainder of the loss is borne by the designer.

Question

Quizplus · Accepted Answer

Marcie's insurance covers $400 of the loss, leaving a remaining $600. The designer's insurance covers $900, so they would be responsible for the remaining $600. Therefore, Marcie would only need to pay her $100 deductible according to her insurance policy, while the designer is liable for the majority of the loss.

Marcie Orders a Dress for $1,000