Cc.

Sanders Hardware Company received an order for $900 of assorted hardware from Richards & Com- pany. The shipping terms were F.O.B. Lester Freight Line, seller's place of business, 2/10, net/30. Sanders packed and crated the hardware for shipment and it was loaded upon Lester's truck. While the goods were in transit to Richards, Sanders learned that Richards was insolvent in the equity sense (unable to pay its debts in the ordinary course of business), Sanders promptly wired Lester's office in Denver, Colorado, and instructed them to stop shipment of the goods to Richards and to store them until further instructions. Lester complied with these instructions. Regarding the rights, duties, and liabilities of the parties, which of the following is correct? )

A- Sanders' stoppage in transit was improper if Richards' assets exceeded its liabilities.

B- Richards is entitled to the hardware if it pays cash.

C- Once Sanders correctly learned of Richards' insolvency, it had no further duty or obliga- tion to Richards.

D- The fact that Richards became insolvent in no way affects the rights, duties, and ob- ligations of the parties.

Choose right option and give explanation 100+ words