Shane's Auto Parts orders twenty tires from Tough Tires, Inc. The truck delivering the tires to Shane's is in an accident and ten of the tires are damaged. Shane's Auto Parts
A) cannot reject the entire shipment.
B) must still pay for all twenty tires at the original contract price.
C) may inspect the tires and accept the shipment with a reduction in price.
D) must reject the entire shipment.

Question

Quizplus · Accepted Answer

Shane's Auto Parts may inspect the tires and accept the shipment with a reduction in price. This is because the Uniform Commercial Code (UCC) allows the buyer to accept a shipment with damages and still have the option to reduce the price accordingly. Therefore, Shane's Auto Parts can still receive the remaining ten undamaged tires with a lower price due to the damages on the other ten tires.

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