In Basse and Selve V

Multiple Choice

In Basse and Selve v.Bank of Autralasia,the seller submitted a phony sample of ore to an inspection company to obtain a Certificate of Analysis showing high- grade ore.On the basis of the certificate,the seller paid for the documents and took delivery of the ore.The ore turned out to be worthless.The court ruled that:

A) The bank had an obligation to inspect the ore before paying for the documents on behalf of the buyer.
B) The buyer had a cause of action against the chemist for fraud.
C) The bank had acted properly in paying the seller even though the ore did not conform to the contract because the certificate was regular on its face.
D) The bank had acted properly in paying the seller because the bill of lading was negotiable.