COMMERCIAL LAW (UCC ARTICLE 2) MULTIPLE CHOICE QUESTION

Agranitesupplier("supplier") andcontractorsignedthefollowingagreementon March 1:

"The supplier promises tosell and thecontractor promises to buy 7,000 pounds of granite at $30perpound.Each section is to be ofgood quality redwoodcolorwithgoldspecswithin.Onethousand (1,000)pounds tobe delivered byselleronor before April 1, and 1,000 pounds bythefirstday in each ofthefollowingsixmonths.Payment forthedelivery to bemade within 10 days of delivery."

Thefirst shipment of 1,000 pounds arrived onMarch 27, and the contractor sent itspayment onApril 5.Thesecond shipment arrived May 1, and the contractor made payment on May 5.TheJuneshipment arrived ontheafternoon of June1.Aftertheinitial inspection, theredwood color wasfound to bepink.Themanager ofthecontractor then called thegranitesupplier.During their conversation, the supplier told thecontractor thatthesupplier could not replace theshipment, but would makeapricereduction.The manager refused.Thenext day, the manager sentthesupplierafaxstatingthathewashereby canceling allfuturedeliveries and returning the last shipment because of non-conformity.

Ifthesuppliersuesthecontractor forbreach ofcontract,thecourtwill mostlikely hold that the granite supplier will:

A. Succeed,becausealldeliveriestodatehavebeentimely.

B. Succeed, becausethesupplieroffered to adjust thepricefortheJune shipment.

C. Succeed,becausethedeviationwasaminordefect.

D. Notsucceed, becausethesupplier refusedtoreplacethenon-conforming pink.

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