Assume you ordered two Bose speakers for your home theater system from Sound Technologies, Inc. in New York. Sound Technologies shipped the speakers to you via UPS, C.O.D. (collect on delivery). You did not agree to a C.O.D. shipment of the speakers. When the speakers arrived, you refused to accept them because you were not able to inspect them before payment. Sound Technologies claimed that it had shipped conforming goods and that you breached the contract.

• Discuss your liability in this situation, and explain whether under the UCC you have a right to reject the shipment. Why or why not?
• Analyze whether you think you should have a legal and moral obligation to pay for the shipment.
• Now assume you accepted the goods and send the payment by way of e-money. Explain the laws that would apply to e-money transactions and the online banking services for the bank you conduct business with in your home state.

My answer:

Yes, in the given scenario you have full rights to reject the shipment. In the online good purchasing business, the COD facility is provided for customer to help them ensure the product they purchased whether it is fit for purpose. One the goods reaches to you, the first thing you are allowed to check whether the product is useful or satisfying your need. if the product or good is not what you are looking for then you can reject the product without paying a single penny.

Rejecting the product under the COD provision is not considered as breach of contract. Online good seller has to consider this as risk in such business.

Answer 2:

As described earlier, there is no breach of contract from your side. therefore, there will be no moral obligation for you to pay for the rejected shipment.

My question: I also wonder how the package was sent C.O.D if this in not the payment option the customer selected ?