Fred's Fireplaces enters into a contract with Miguel's Patio Supply in which Miguel's agrees to purchase 20 fireplaces. This is considered a small order. Miguel, who is still running a business and who is still solvent, fails to pay for the fireplaces. Fred's Fireplaces 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 permitted when the buyer is solvent only if the quantity shipped is large.
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, a seller may stop delivery any time.

Question

Quizplus · Accepted Answer

Under the UCC, a seller can stop delivery of goods in transit if the buyer is insolvent or if the shipment is large. Since Miguel is solvent and the order is small, Fred's Fireplaces cannot stop delivery.

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