Speedy's Auto Parts orders twenty tires from Tough Tires, Inc. Ten of the tires are delivered in a damaged condition. Speedy's
A) cannot reject the entire shipment.
B) must pay for all of the tires at the contract price.
C) may accept the shipment with a reduction in price.
D) must reject the entire shipment.

Question

Speedy's Auto Parts orders twenty tires from Tough Tires, Inc. Ten of the tires are delivered in a damaged condition. Speedy's
A) ​cannot reject the entire shipment.
B) ​must pay for all of the tires at the contract price.
C) ​may accept the shipment with a reduction in price.
D) ​must reject the entire shipment.

Quizplus · Accepted Answer

Speedy's can accept the shipment with a reduction in price. This is because they are not required to reject the entire shipment, but they also shouldn't be forced to pay for the damaged tires at the full contract price. Speedy's can negotiate a lower price with Tough Tires, Inc. to account for the damaged tires.

Speedy's Auto Parts Orders Twenty Tires from Tough Tires, Inc