Suppose NovaTek sells $10,000 worth of goods to BestGear on credit and ships the products. During shipment NovaTek discovers BestGear is insolvent. NovaTek can stop shipment of the product if BestGear has not provided assurances.

Question

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Under the Uniform Commercial Code (UCC), a seller has the right to stop delivery of goods in transit if the buyer is insolvent and has not yet provided assurances of payment.

Suppose NovaTek Sells $10,000 Worth of Goods to BestGear on Credit