Acme Refining collects, melts down, and resells scrap metal. In producing its cars, General Motors (GM) creates a massive amount of scrap metal that must be removed. Acme contracted to purchase and pick up scrap metal from GM’s plant. The contract provided that the metal was to be taken “as-is, where-is.” After removing 850,000 tons of metal from the GM plant, Acme realized the metal was corrupted by nonmetal products and waste oils, making smelting much more costly. Instead of rejecting the metal, Acme e-mailed GM over several weeks in an attempt to negotiate a lower price. Unable to bring down the price, Acme then rejected all the scrap metal.

CASE QUESTIONS

1. Was Acme’s rejection lawful?

2. Did Acme give seasonable notification of rejection?