Question

Food Packaging, Inc., agrees to sell 50,000 6-ounce yogurt containers to Golden Dairy Company. Food can obtain only 20,000 of the 6-ounce containers, but also ships 30,000 more expensive 8-ounce containers for the same price. Under these circumstances, Golden
A. cannot reject delivery, and Food cannot later replace the containers.
B. cannot reject delivery, but Food can later replace the containers.
C. may reject delivery, and notice to Golden of Food’s intent to cure will give Food a reasonable time to replace the containers.
D. may reject delivery, but Food cannot later replace the containers.

Answer 1

Answer:

Option C.

Explanation:

From the scenario presented above, Golden is not in any way liable for the inability to supply the total quantity of the 6-ounce yogurt containers, therefore, Golden can choose to reject the delivery of the 8-ounce containers.

Also, Golden can give Food Packaging a reasonable amount of time to enable them replace the containers, of Golden is not in a hurry to begin production and packaging.