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) cannot reject the October shipment since it is part of the installment series.
C) must pay for the defective tires, but Supertread must provide 200 tires in November.
D) can reject the October shipment if it cannot be cured in a timely manner by Supertread.

Question

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), which governs the sale of goods, a buyer can reject a shipment of goods if the goods fail to conform to the contract and the non-conformity substantially impairs the value of the shipment to the buyer. If the non-conformity cannot be cured in a timely manner, the buyer has the right to reject the shipment. In this case, since the October shipment consisted of 100 badly defective tires, ZYX Cycle Company can reject the October shipment if Supertread Tire Company cannot cure the defect in a timely manner.

On June 1, Supertread Tire Company Entered into a Contract