Cynthia orders 100 shirts in a variety of colors for her screenprinting business from Juan, a shirt supplier. Before Juan ships the shirts, he discovers through conversations with other shirt suppliers that Cynthia is insolvent and is unlikely to pay for the shirts upon their delivery.

• What remedy does Juan have in this scenario?
• Juan must ship the shirts regardless; otherwise, he will be in breach of contract.
• Juan has no recourse in this scenario, since Cynthia is insolvent.
• Juan may refuse to deliver the shirts unless Cynthia pays in cash ahead of delivery.
• Juan has 10 days to determine whether or not Cynthia is actually insolvent, at which point he must ship the shirts or cancel the contract.