Field Farms and Gourmet Restaurant enter into a contract for a sale of produce. After Field Farms ships the lettuce but before the restaurant receives it, the buyer declares bankruptcy. The seller can stop delivery of the goods in transit
A) only if the quantity is at least 50 percent of the contract amount.
B) only if the quantity is in a single "unit."
C) only if the quantity is at least a truckload.
D) regardless of the quantity.

Question

Field Farms and Gourmet Restaurant enter into a contract for a sale of produce. After Field Farms ships the lettuce but before the restaurant receives it, the buyer declares bankruptcy. The seller can stop delivery of the goods in transit​
A) ​only if the quantity is at least 50 percent of the contract amount.
B) ​only if the quantity is in a single "unit."
C) ​only if the quantity is at least a truckload.
D) ​regardless of the quantity.

Quizplus · Accepted Answer

The Uniform Commercial Code (UCC) allows the seller to stop delivery of goods in transit if the buyer is insolvent or has declared bankruptcy, regardless of the quantity or unit. This applies to all goods in transit, not just a specific quantity or type of unit.

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