Honoria agreed to sell a shipment of widgets to Klaus on credit.Following the terms of the contract, Honoria delivered the widgets to an independent carrier and instructed the carrier to deliver the shipment to Klaus's warehouse.Which of the following statements is TRUE?
A) Honoria still has the authority and the ability to exercise a lien in order to retain possession of the shipment until Klaus pays the full purchase price.
B) Honoria can exercise the right of repossession against the independent carrier if she hears a rumor that the carrier may be insolvent.
C) If Klaus becomes bankrupt, Honoria is entitled to rely on the implied condition of solvency.
D) If Honoria becomes insolvent while the goods are being shipped by the carrier, Klaus should exercise a lien over the widgets.
E) If Klaus becomes insolvent while the carrier still has possession of the shipment, Honoria should exercise the right of stoppage in transit.
Correct Answer:
Verified
Q41: Which of the following statements is TRUE
Q42: Which of the following transactions falls OUTSIDE
Q43: The implied term regarding fitness for intended
Q44: Which of the following are special remedies
Q45: Naima ordered 100 spools of string from
Q47: The Sale of Goods Act implies a
A)warranty
Q48: Myla became violently ill after eating a
Q49: Jasper bought a set of widgets from
Q50: Which of the following statements is TRUE
Q51: Shasta contractually agreed to purchase a crystal
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents