Question

Amboy Closeouts, Inc., agreed to purchase 25,000 Christmas ornaments from Polar Trading, Inc. Alcorn, president of Amboy, requested 15 cases of the ornaments as samples and agreed to purchase the samples if he was pleased with the quality. He received the samples and determined that they were in satisfactory condition, but the bill was never paid. Alcorn contacted Polar Trading to order more ornaments, but he was told that he needed to fax a copy of a deposit check in order to secure the shipment. Alcorn faxed a copy of the $2,000 deposit check to Polar Trading, but he did not mail the check. Polar Trading sent a total of 352 ornaments to Alcorn. After receiving the shipment, Alcorn contacted Polar Trading and reported that many of the cases were defective. He had already sold some of the ornaments, but the rest were sent back. Polar Trading sold some of the returned ornaments but was unable to sell the complete shipment. Amboy argued that, under the UCC, it had the right to reject all the goods, accept all the goods, or partially accept and reject some of the goods. Furthermore, Amboy argued that Polar Trading breached the con- tract by delivering defective goods and, therefore, no payment was due. How did the court decide?


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  • CreatedOctober 21, 2015
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