J & J Co. offers a "subscription" for baby toys to be delivered every two months from the birth of a child. Payment must be made within two weeks of delivery. The Markham family accepted the J & J plan when their son, Timmy, was born. When Timmy was four months old, one J & J toy arrived smashed to pieces. Markham:
A) can treat the whole contract as breached and refuse to pay for past installments as well as future installments.
B) can reject the installment and cancel the contract immediately.
C) can reject the installment and refuse to pay for it if J & J cannot cure it.
D) cannot reject the installment since it is part of a series.

Question

Quizplus · Accepted Answer

C is correct because under the Uniform Commercial Code (UCC), which governs sales of goods, a buyer can reject a non-conforming installment if the seller fails to cure it, but this does not necessarily breach the entire contract unless the non-conformity substantially impairs the value of the entire contract.

J & J Co Offers a "Subscription" for Baby Toys to Be Delivered