Carten Printing Receives an Unexpectedly Large Order for Shipping Envelopes

Multiple Choice

Carten Printing receives an unexpectedly large order for shipping envelopes from one of its regular clients, a major Canadian CD-ROM retailer. In order to meet the order delivery date, Carten farms out part of the printing to another firm, Serger Printing. Serger, in an attempt to raise its own profit margin on the deal, uses lower grade adhesive and cuts corners on printing quality. The faulty shipping envelopes show up as returns made to the retailer from dissatisfied customers. The retailer takes action against Carten for damages. What is the most likely outcome?

A) The retailer will not succeed against Carten but will have a right of recovery against Serger.
B) The retailer will succeed against Carten, and Carten will have no right of recovery against Serger.
C) a novation.
D) The retailer will succeed against Carten, and Carten will have a similar right of recovery against Serger.
E) The retailer will have a right of recovery against both Carten and Serger.