Marcum replied that because Bain had accepted the order and unloaded it, he was not entitled to return of the purchase price. Who is correct? Explain.
Bain ordered from Marcum a carload of lumber, which he intended to use in the construction of small boats for the U.S. Navy pursuant to contract. The order specified that the lumber was to be free from knots, wormholes, and defects. The lumber was shipped, and immediately upon receipt, Bain looked in the door of the fully loaded car, ascertained that there was a full carload of lumber, and acknowledged to Marcum that the carload had been received. On the same day, Bain moved the car to his private siding and sent to Marcum full payment in accordance with the terms of the order. A day later, the car was moved to the work area and unloaded in the presence of the Navy inspector, who refused to allow three-fourths of it to be used because of excessive knots and wormholes in the lumber. Bain then informed Marcum that he was rejecting the order and requested refund of the payment and directions on disposition of the lumber. Marcum replied that because Bain had accepted the order and unloaded it, he was not entitled to return of the purchase price. Who is correct? Explain.
Section 2 (602) (1), with respect to inspection, states that the buyer has right to inspect the delivered goods before its acceptance. In the case of the availability of noncomforming goods, the buyer of the goods can reject the delivery of the goods within a reasonable time. In this case, the notice of rejection, in the context of the nonconforming delivered goods, was sent by the Buyer B within a reasonable time.
Buyer B is right.The inspection rule provides a reasonable time for the buyer to inspect the conformity of the goods before giving acceptance. In this case, the buyer inspected the goods within a reasonable time and promptly rejected the delivery of the nonconforming goods.