$2.$ Specific Obligations of Sellers and Lessors

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Specific Obligations of Sellers and Lessors

Introduction

Read the overview below and complete the activities that follow.

Before beginning this interactive, read the section on "Specific Obligations of Buyers and Lessees" in your text. Pay attention to the different exceptions to the basic obligation of buyers and lessees to pay for goods.

CONCEPT REVIEW:

Under Uniform Commercial Code Sections $2-301$ and $2$A$-516(1),$ buyers and lessees are obligated to accept and pay for conforming goods in accordance with the contract. Before paying for and accepting the goods, buyers$/$lessees ordinarily inspect the goods to make sure they conform to the specifications in the parties' agreement.

Mini$-$Case:

Read the following scenario, and then create a strategy for how the buyer in this scenario, Davis, could inspect and accept or reject the goods presented. The questions following the scenario will help you outline what a typical inspection process entails.

Suppose Davis owns a custom motorcycle shop. In his line of work, he routinely orders large shipments of parts from manufacturers. On this particular occasion, he orders $15$ custom exhaust pipes for Harley$-$Davidson bikes. He specified on the order form that he desired the chrome $1-3/4"$ head pipes. However, the parts manufacturer sent Davis $2"$ head pipes instead.

Walk through the scenario of how Davis could accept or reject the goods presented.

$2$a$.$ Under Uniform Commercial Code...

Under Uniform Commercial Code $($UCC$)$ Sections $2-513(1)$ and $2$A$-515(1),$ the seller of the exhaust pipes must provide an opportunity for $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ before enforcing payment.

Multiple Choice

acceptance

revocation

inspection