Asked by Kaleb Shamburg on Jul 21, 2024
Verified
Fresh Grow Farm enters into a contract with Gourmand's Restaurant for a sale of a certain quantity of specified vegetables. After Fresh ships the produce but before Gourmand's receives it, the buyer declares bankruptcy. Fresh can stop delivery of the goods in transit
A) only if the quantity is at least 50 percent of the contract amount.
B) only if the quantity is in a single "unit."
C) only if the quantity is at least a truckload.
D) regardless of the quantity.
Bankruptcy
A legal process for individuals or businesses that are unable to repay their outstanding debts.
Stop Delivery
A directive by a seller to halt the transfer of goods to a buyer, typically due to a cancellation or alteration of the order or payment issues.
- Acquire knowledge on the responsibilities that fall on a seller or lessor if the goods delivered are defective or do not meet the agreed specifications.
Verified Answer
AM
Ashish MittalJul 27, 2024
Final Answer :
D
Explanation :
Under the Uniform Commercial Code (UCC), a seller may stop delivery of goods in transit to the buyer upon learning that the buyer has declared bankruptcy, regardless of the quantity of goods being shipped. This right is designed to protect sellers from the risk of non-payment in the event of the buyer's insolvency.
Learning Objectives
- Acquire knowledge on the responsibilities that fall on a seller or lessor if the goods delivered are defective or do not meet the agreed specifications.
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