On June 1, Supertread Tire Company entered into a contract to provide 100 tires per month to ZYX Cycle Company at $30 per tire for the next two years. The October shipment consisted of 100 badly defective tires. ZYX Cycle Company:
A) can treat the whole contract as breached.
B) can reject the October shipment if it cannot be cured in a timely manner by Supertread.
C) cannot reject the October shipment since it is part of the installment series.
D) must pay for the defective tires, but Supertread must provide 200 tires in November.

Question

Quizplus · Accepted Answer

B) ZYX Cycle Company can reject the October shipment if it cannot be cured in a timely manner by Supertread. This is because the Uniform Commercial Code (UCC) allows for rejection of goods that fail to conform to the contract unless the seller can cure the defect within the contract terms.

On June 1, Supertread Tire Company Entered into a Contract