Asked by Yessenia Castro on May 12, 2024
Verified
Massive Equipment Company sends machinery on approval to Mountain Moving Company.While in possession of the machinery,but prior to acceptance,Mountain becomes insolvent.The machinery is subject to the claims of Mountain's creditors.
Machinery on Approval
A sales agreement condition where the buyer can return the machinery if it doesn't meet specified requirements or expectations.
Insolvent
A financial state in which an entity is unable to pay its debts as they come due.
Claims
Demands for something due or believed to be due, often used in the context of insurance or legal cases.
- Ascertain the qualities of goods and their significance for contracts related to products yet to be produced or uniquely crafted items.
- Recognize the implications of the UCC on merchants, including the modifications to common law rules.
Verified Answer
SL
Sydnie LindnerMay 16, 2024
Final Answer :
False
Explanation :
Until Mountain Moving Company formally accepts the machinery, it remains the property of Massive Equipment Company and is not subject to the claims of Mountain's creditors.
Learning Objectives
- Ascertain the qualities of goods and their significance for contracts related to products yet to be produced or uniquely crafted items.
- Recognize the implications of the UCC on merchants, including the modifications to common law rules.
Related questions
________ Is a Method of Commercial Dealing That Is Commonly ...
The Emmett School District (ESD)contracts with the GoldenFarms Dairy for ...
If Both Parties Are Merchants,the UCC Modifies the Common Law ...
If the Buyer Is Not a Merchant,then Her Obligation After ...
Which of the Following Is True Regarding the Approach Taken ...