Precise Parts, Inc., and Quality Auto stores enter into a contract for a sale of auto parts that meet certain specifications. Precise Parts ships goods that do not comply. Quality Auto
A) cannot reject the entire shipment.
B) can reject the entire shipment.
C) must accept the entire shipment.
D) must reject the entire shipment.

Question

Precise Parts, Inc., and Quality Auto stores enter into a contract for a sale of auto parts that meet certain specifications. Precise Parts ships goods that do not comply. Quality Auto
A) ​cannot reject the entire shipment.
B) ​can reject the entire shipment.
C) ​must accept the entire shipment.
D) ​must reject the entire shipment.

Quizplus · Accepted Answer

Quality Auto has the right to reject the entire shipment as it does not comply with the agreed specifications. This is known as a breach of contract by Precise Parts. Quality Auto can either return the goods or accept them at a reduced price, depending on their preference and the terms of the contract.