Question

A hardware store ordered 200 cans of wood stain in various shades. The written contract between the store and manufacturer provided that 100 cans of stain would be delivered on April 30, and the remaining 100 cans would be delivered on June 30. Payment would be due at the time of each delivery. The first shipment arrived on April 30. Sales of the stain were brisk, but 25 customers almost immediately returned their stain, complaining that it was not the color indicated on the can. The store owner called the manufacturer and informed it of the problem. The manufacturer truthfully told the owner that they had had a small problem with their labeling machine and a few cans in the store owner's lot must have been mislabeled before they caught the problem. The manufacturer offered to replace all 100 cans from the original order. The store owner refused the offer and told the manufacturer not to deliver the second lot, because he could no longer trust the manufacturer. The owner was very sensitive to the hardware store's good reputation, which he felt was harmed by this incident. If the manufacturer brings a claim of breach regarding the second shipment which was due on June 30, how will the court likely rule

Answer 1

The answer is "Option C".

Step-by-step explanation:

Its customer wasn't entitled to lose the second shipment, because the flaws on the first delivery won't significantly affect the profitability of a whole contract. This main decision an installment contract, that is to state, the contract permits or mandates deliveries in individual lots and selling goods. Under Article 2, a purchaser could only declare а total breach of a payment agreement in which the flaw substantially determines the profitability of the whole deal. The producer found & remedied the problem with the first shipment of the stain. In the first shipment, the manufacturer offered to cure the issue. Its problem in the first delivery was not even in the entire worth of the whole contract substantially damaged.