Floors and More, Inc. was contacted by Dr. Straight for an order os a specific brand and
Question:
Floors and More, Inc. was contacted by Dr. Straight for an order os a specific brand and color of non-slip tile. Dr. Straight made it clear that the tile was needed for installation beginning November 21st so that it would be ready for the planned grand opening of a new dental office on December 1st. Floors accepted the terms of the contract and delivered the first of three shipments of tile on November 7th, the second batch arrived on November 15th and the final shipment on November 21st. None of the shipments were due until November 21st when the installation was scheduled to get underway. As the installers began opening boxes on the 21st, Dr. Straight discovers that the tile was the wrong color. She immediately notifies Floors and More, Inc. of the nonconformity. Floors' management response stated that the Dr. was "out of luck because they did not advise Floors that the tile was the wrong color upon the first delivery.
A) Does Dr. Straight have the right to reject the goods on November 21st? If yes, how should it be carried out? If no, why not?
B) Assume Dr. Straight was present and opened the first box of tiles on November 7th and discovered they were the wrong color. What options does the Dr. have on the 7th? Does the Dr. have to wait until November 21st to consider the contract breached? What if the Dr. worries that Floors and won't have the right color on the second or final shipment and wants to go with some other supplier? Is this permissible?
C) Assume Dr. Straight decided to order from a different supplier. The boxes of nonconforming tiles are in the way for the grand opening gala. Dr. Straight needs to have the bad tiles moved out of the office to the garage to await pick up by Floors and More. What duties and obligations does Dr. Straight have concerning the tiles and what duties and obligations does Floors have concerning the tiles? Explain fully.
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer