Klint Microsystems, a microprocessor manufacturer, was contracted by Zeitar Studios to manufacture specially designed microchips to be used in an audio engineering process.Zeitar was to pay Klint $300, 000 as per the contract.Klint decided to redesign their existing microchips and make them suitable for Zeitar.While the finished microchips were being shipped via a carrier, Klint was informed of Zeitar's insolvency.Klint cancelled the shipment before it was delivered.Klint then resold the chips to another Studio where they had to settle for $150, 000, as the chips were now only suitable for specific audio engineering processes.
-What right to remedy did Klint exercise when they stopped shipment to Zeitar?
A)right to dispose of goods
B)right to stop goods in transit
C)right to obtain specific performance
D)right to recover purchase rent

Question

Quizplus · Accepted Answer

Klint exercised their right to stop goods in transit. This right allows the seller to stop the delivery of goods if they become aware of the buyer's insolvency before delivery.

Klint Microsystems, a Microprocessor Manufacturer, Was Contracted by Zeitar Studios