Bar Exam (US) Remedies: Through an inadvertent governmental leak, Beau learned that testing by t...

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Through an inadvertent governmental leak, Beau learned that testing by the Food and Drug Administration seemed to indicate that a compound used in the aging of Gouda cheese caused cancer when ingested by laboratory mice. The test results were due to be officially released in nine months. Beau, the president of a domestic Gouda cheese producer, contacted Samuel. Samuel was a leading organic chemist specializing in the development of dairy-related procedures and products. Samuel claimed to have developed a new compound which he referred to as "Agee" that would replace the compound presently used. Beau contracted in writing with Samuel to purchase 1,000 pounds of Agee at $10 per pound, freight prepaid to Beau's plant.

Beau realized that purchasers of his cheese would demand the same mild flavored, close-textured cheese that is characteristic of Gouda cheese. Therefore, the contract of sale expressly provided that the use of Agee would not impact the generally recognized character of the cheese. The contract also provided that the Agee would be delivered in lots of 250 pounds per month beginning June 1, that Beau should pay for each lot of 250 pounds as delivered, and that Beau would make payment within 24 hours after delivery.

Immediately upon delivery of the first lot of 250 pounds of Agee on June 1, Beau forwarded to Samuel a check for $2,500. Upon testing the Agee, Beau determined that its use was likely to result in a considerably sharper cheese. Proper testing of the Agee required at least 72 hours and cost Beau $2,500. Beau decided that, despite the test results, he would use 50 pounds of Agee in actual production of the cheese. On June 25, Beau notified Samuel that he was rejecting all of the Agee delivered and would reject all future deliveries because of the changes to the character of the cheese that resulted when Agee was used.

With respect to the 200 pounds delivered but unused Agee assuming Beau's rejection of the Agee was justified, Beau can recover:

AnswerChoose the correct answer.Choose all that apply. Correct Partially correct Incorrect Don't Know

  1. A
    Correct Answer
    Nothing.
  2. B
    Correct Answer
    Two-thirds of the $2,000 he paid for it.
  3. C
    Correct Answer
    The entire $2,000, and he can resell the Agee for Samuel's account.
  4. D
    Correct Answer
    The entire $2,000 he paid for them, but he cannot resell the Agee for Samuel's account.
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