Question
On July 1, Celeste, the owner of a large produce operation, purchased 30 crates of heirloom avocados from Finest, a wholesaler, for $5,000, payment due
On July 1, Celeste, the owner of a large produce operation, purchased 30 crates of heirloom avocados from Finest, a wholesaler, for $5,000, payment due 30 days after delivery. Under the terms and conditions of the sale documents, the Buyer had an obligation to refrigerate the avocados prior to use. Celeste's refrigerator system was shut down several times in July by Con Edison who had reduced electrical power to commercial customers during a July heat wave. When Celeste unpacked the crates, she found that each crate contained some rotten avocados. Celeste told Finest that she would not pay $5,000 for the avocados because Finest had shipped rotten avocados. Finest replied that any rotten avocados were solely Celeste's fault because she had not properly refrigerated the avocados during the July heat wave. After several weeks of arguments, on August 2, Celeste sent Finest a check for $3,800 on which she had written, "In full payment for July avocados purchased." Finest endorsed and deposited the check. Finest did not make any notations on the check. Finest sued Celeste for $1,200.
(a)Judgment for whom? Explain fully.
(b)Assume instead, that when Finest endorsed Celeste's check, he added the words "without prejudice." What result? Explain fully. (30 points)
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