Chapter $12$ Assignment $(20$ points$)$

GFI, Inc., a Hong Kong company, makes audio decoder chips, one of the essential components used in the manufacture of MP$3$ players. Egan Electronics contracts with GFI to buy $10,000$ chips on an installment contract, with $2,500$ chips to be shipped every three $(3)$ months, F$.$O$.$B$.$ Hong Kong via Air Express. At the time for the first delivery, GFI delivers only $2,400$ chips but explains to Egan that even though the shipment is $4\%$ short, the chips are of a higher quality than those specified in the contract and are worth $5\%$ more than the contract price. Egan accepts and pays for the chips. At the time for the second shipment, GFI makes a shipment identical to the first. Egan again accepts and pays for the chips. At the time for the third shipment, GFI ships $2,400$ of the same chips, but this time GFI sens them via Hong Kong Air instead of Air Express. While in transit, the chips are destroyed. When it is time for the fourth shipment, GFI again sends $2,400$ chips, but this time Egan rejects the chips without explanation. Using the information presented in this chapter, answer the following questions.

Did GFI have a legitimate reason to expect that Egan would accept the fourth shipment? Why or why not? Please explain in detail. $(5$ points$)$

Does the substitution of carriers for the third shipment constitute a breach of contract by GFI? Explain in detail. $(5$ points$)$

Suppose that the silicon used for the chips becomes unavailable for a period of time and that GFI cannot manufacture enough chips to fulfill the contract but does ship as many as it can to Egan. Under what doctrine might a court release GFI from further performance of the contract? $(5$ points$)$

Under the UCC, does Egan have a right to reject the fourth shipment? Why or why not? Explain in detail. $(5$ points$)$

Objectives. The objectives of this assignment are $(1)$ to apply the material from Chapter $12,$ and $(2)$ to enhance the written and communication skills of the student.

Required. When answering the four $(4)$ questions above, be sure to answer each and every question and sub$-$question that is asked. Students' answers should be at least $12$ pages in length, should be typed in Microsoft Word using $12-$point Times New Roman font, double spacing and $1"$ margins. In order to receive any points, students must complete all four $(4)$ questions.

Grading. You will be graded on the organization and quality of your work, as well as your ability to follow directions. For example, turning in the assignment with improper grammar and$/$or spelling will not help the overall quality component of your grade on this assignment. Further, not including one or more of the required elements will negatively impact your score on this assignment. $(2$ points for other $-$ grammar, organization, etc