Field Farms and Gourmet Restaurant enter into a contract for a sale of produce.After Field ships the lettuce but before the restaurant receives it,the buyer declares bankruptcy.The seller can stop delivery of the goods in transit

Question

Field Farms and Gourmet Restaurant enter into a contract for a sale of produce.After Field ships the lettuce but before the restaurant receives it,the buyer declares bankruptcy.The seller can stop delivery of the goods in transit​

Quizplus · Accepted Answer

According to the Uniform Commercial Code (UCC), a seller can stop delivery of goods in transit if the buyer becomes insolvent or declares bankruptcy, regardless of the quantity or unit of the goods. This is known as the seller's right of stoppage in transit.

Field Farms and Gourmet Restaurant Enter into a Contract for a Sale