Mansfield Dairies entered into a contract with Aratez,Inc.,a dairy product food processing company,to provide dairy products for a period of four years.The contract included a provision for a one-year limitation period in case of breach.But with less than a year left on the contract,Mansfield Dairies stopped shipment of milk products to Aratez,Inc.Under the UCC statute of limitations,which of the following would be true with reference to Aratez,Inc.'s right to bring a lawsuit against Mansfield Dairies?

Question

Quizplus · Accepted Answer

The contract included a provision for a one-year limitation period in case of breach. Therefore, Aratez, Inc. has the right to bring a lawsuit against Mansfield Dairies within one year from the breach, regardless of the remaining time left on the contract. Option D is incorrect because the limitation period is only for one year, not four years. Option B is incorrect because there is no requirement to wait until the expiration of the contract to file a lawsuit. Option C is incorrect because the fact that there was less than one year left on the contract does not affect the right to bring a lawsuit within the limitation period provided in the contract.

Mansfield Dairies Entered into a Contract with Aratez,Inc