Question

Applewood, Inc. has a contract with Marco's Electronics to sell Marco's 500 car audio systems at a price of $100 each. Applewood is located in New York. Marco's is located in Indiana. While the goods are in transit, Applewood learns that Marco's has become insolvent. Applewood has the right to:

Answer 1

Applewood can stop the shipment and have the goods returned (the right of stoppage of goods).

Step-by-step explanation:

When the buyer becomes insolvent while the goods are in transit, and the goods have not been paid yet, then the seller has the right to stop the delivery and resume possession of the goods.

Applewood could also try to sue Marco for specific performance but considering their current position it might be useless and actually result in more money invested and larger losses.