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 its 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 it had to settle for $150,000,as the chips were now suitable for specific audio engineering processes only.What remedy did Klint exercise when it stopped shipment to Zeitar?

Question

Quizplus · Accepted Answer

Klint exercised the remedy to stop goods in transit when it cancelled the shipment before it was delivered, after learning of Zeitar's insolvency. This is a common form of remedy available to a seller under the Uniform Commercial Code (UCC) when the buyer becomes insolvent or unable to pay for the goods. As a result, Klint had the right to stop the shipment and prevent Zeitar from taking delivery of the goods.

Klint Microsystems,a Microprocessor Manufacturer,was Contracted by Zeitar Studios to Manufacture