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

Question 57

Multiple Choice

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, upon discovering that Miguel is insolvent, stops delivery as the fireplaces are on the way to Miguel. Did Fred's Fireplaces act appropriately?


A) No because stopping delivery of goods in transit is never appropriate .
B) No because filing a lawsuit is required before stopping delivery of goods in transit.
C) No because stopping delivery of goods in transit 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 stopping delivery of goods in transit in the event of a breach.
E) Yes, because the UCC allows a seller to stop delivery of goods that are in transit.

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