Klint Microsystems, a microprocessor manufacturer, was contracted by Zeitar Studios to manufacture specially designed microchips to be used in an audio engineering process. Zeitar was to pay Klint $300,000 as per the contract. Klint decided to redesign their existing microchips and make them suitable for Zeitar. While the finished microchips were being shipped via a carrier, Klint was informed of Zeitar's insolvency. Klint cancelled the shipment before it was delivered. Klint then resold the chips to another studio where they had to settle for $150,000 as the chips were now only suitable for specific audio engineering processes. What right to remedy did Klint exercise when selling the microchips to another studio?
A) right to claim lost profits
B) right to cover
C) right to dispose of goods
D) right to recover damages

Question

Quizplus · Accepted Answer

Klint Microsystems exercised their right to dispose of goods by selling the microchips to another studio after cancelling the shipment to Zeitar due to their insolvency. This right allows a seller to resell the goods in the market or dispose of them in any other manner they see fit.

Klint Microsystems, a Microprocessor Manufacturer, Was Contracted by Zeitar Studios