Page:United States Statutes at Large Volume 50 Part 1.djvu/65

 40 Delivery to a carrier on behalf of the buyer. Right to examine the goods. What constitutes acceptance. Acceptance does not bar action for dam- ages. Buyer is not bound to return goods wrongly delivered. 75TH CONGRESS, 1sT SESSION-CH. 43-MARCH 17, 1937 contract, or whether the breach is severable, giving rise to a claim for compensation but not to a right to treat the whole contract as broken. SEC. 46 . DELIVERY TO A CARRIER ON BEHALF OF THE Bu TR: (1) Where, in pursuance of a contract to sell or a sale, the seller is authorized or required to send the goods to the buyer, delivery of the goods to a carrier, whether named by the buyer or not, for the pur- pose of transmission to the buyer is deemed to be a delivery of the goo ds to the bu yer, e xcept in the cases provi ded fo r in s ection 19, rule 5, or unless a contrary intent appears. (2) Unless otherwise authorized by the buyer, the seller must make such contract with the carrier on behalf of the buyer as may be reasonable, having regard to the nature of the goods and the other circumstances of the case. If the seller omit so to do, and the goods are lost or damaged in course of transit, the buyer may de- cline to treat the delivery to the carrier as a delivery to himself, or may hold the seller responsible in damages. (3) Unless otherwise agreed, where goods are sent by the seller to the buyer under circumstances in which the seller knows or ought to know that it is usual to insure, the seller must give such notice to the buyer as may enable him to insure them during their transit, and, if the seller fails to do so, the goods shall be deemed .to be at his risk during such transit. SEC. 47. RIGHT TO EXAMINE THE GOODS .- (1) Where goods are deliv- ered to the buyer which he has not previously examined, he is not deemed to have accepted then unless and until he has had a reason- able opportunity of examining them for the purpose of ascertaining whether they are in conformity with the contract. (2) Unless otherwise agreed, when the seller tenders delivery of goods to the buyer, he is bound, on request, to afford the buyer a reasonable opportunity of examining the goods for the purpose of ascertaining whether they are in conformity with the contract. (3) Where goods are delivered to a carrier by the seller, in accord- ance with an order from or agreement with the buyer, upon the terms that the goo ds shal l not be deliver ed by t he carri er to th e buyer until he has paid the price, whether such terms are indicated by marking the goods with the words "collect on delivery", or otherwise, the buyer is not entitled to examine the goods before payment of the price in the absence of agreement permitting such examination. SE C. 48. WHAT CONSTITUTES ACCEPTANCE .-The buyer is deemed to have accepted the goods when he intimates to the seller that he has acc epted them, or when the goods have been deli vered to h im, a nd he does any act in relation to them which is inconsistent with the owne rship of the se ller, or when, a fter th e lapse of a rea sonable time, he retains the goods without intimating to the seller that he has rejected them. SEC. 49 . ACCEPTANCE DOES NOT BAR ACTION FOR DAMAGES .-In the absence of express or implied agreement of the parties, acceptance of t he goods by the buyer s hall not discha rge the seller f rom lia bility in damages or other legal remedy for breach of any promise or war- ranty in the contract to sell or the sale. Bu t, if, a fter acc eptance of the goods, the buyer fail to give notice to the seller of the breach of any promise or warranty within a reasonable time after the buyer knows, or ought to know of such breach, the seller shall not be liable therefor. SEC. 50. BUYER IS NOT BOUND TO RETURN GOODS WRONGLY DELIV- ERED.-Unless otherwise agreed, where goods are delivered to the