Field Farms and Gourmet Restaurant enter into a contract for a sale of lettuce. After Field Farms ships the lettuce but before the restaurant receives it, Gourmet goes out of business and sends notice to Field that it won't be paying for the lettuce. Field
A) can stop the shipment.
B) cannot stop the shipment but can sue Gourmet for damages.
C) can stop the shipment only if Gourmet pays for half of the shipping price.
D) cannot stop the shipment or sue Gourmet for damages until the lettuce is proven to be in good condition on arrival.

Question

Quizplus · Accepted Answer

Field Farms can stop the shipment because Gourmet Restaurant has repudiated the contract by indicating it will not pay for the lettuce. Under the Uniform Commercial Code (UCC), a seller can stop delivery of goods in transit if the buyer repudiates the contract before receiving the goods.

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