Fred's Fireplaces enters into a contract with Miguel's Patio Supply in which Miguel's agrees to purchase 20 fireplaces. Miguel fails to pay and Fred's Fireplaces withholds delivery. Did Fred's Fireplaces act appropriately?
A) No because withholding delivery is never appropriate.
B) No because filing a lawsuit is required before withholding delivery.
C) No because withholding delivery is appropriate in the event of breach only if the contract is for at least 50 units of goods.
D) No, because the UCC requires sellers to notify buyers within 100 days of withholding an order in the event of a breach.
E) Yes, because the UCC allows a seller to withhold delivery when a buyer breaches the contract.

Question

Quizplus · Accepted Answer

The Uniform Commercial Code (UCC) permits a seller, like Fred's Fireplaces, to withhold delivery of goods if the buyer, in this case, Miguel's Patio Supply, breaches the contract by failing to pay. This action is considered appropriate and is a remedy available to sellers under the UCC, regardless of the quantity of goods involved.

Fred's Fireplaces Enters into a Contract with Miguel's Patio Supply