Exam Rules - Contracts and Sales

Question 1

What happens if a buyer rejects and then subsequently accepts goods, without informing the buyer

Answer 1

The goods are converted

Question 2

What are the damages for conversion

Answer 2

The fair market value of the goods at the time of the conversion

Question 3

How does proper rejection occur

Answer 3

The buyer must (1) notify the seller of the rejection within a reasonable time (2) store the goods with reasonable care for a sufficient amount of time for the seller to collect the goods (3) inform the seller of the particular defect