Mack's Bar sent Olive Outlet an order for 200 cases of olives to be shipped "as soon as possible." The day Olive Outlet receives Mack's order, it does not have 200 cases of olives in stock, so it sends Mack's Bar 140 cases of olives and 60 cases of onions. Olive Outlet notifies Mack's Bar that they are shipping the onions in lieu of olives. Later that day, Mack's Bar phones Olive Outlet and tries to revoke the offer. According to the Uniform Commercial Code (UCC), which of the following statements holds true to this situation?
A) Mack's Bar must accept the shipment as they were notified.
B) Olive Outlet has accepted and breached the contract.
C) Olive Outlet's shipment is considered a counteroffer.
D) Mack's Bar must reject the shipment as the goods are nonconforming.

Question

Quizplus · Accepted Answer

In the given scenario, Olive Outlet's shipment will be considered a counteroffer. The Uniform Commercial Code (UCC) says that the seller who ships "nonconforming goods" (something different from what was ordered), has accepted and breached the contract, unless the seller reasonably notifies the buyer that such a shipment is intended as an "accommodation" to the buyer. In such a case, shipment is in effect a counteroffer that the buyer is free to accept or reject.

Mack's Bar Sent Olive Outlet an Order for 200 Cases