Shane's Auto Parts orders twenty tires from Tough Tires,Inc.The truck delivering the tires to Shane's is involved 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

According to the scenario, only ten out of the twenty delivered tires are damaged. Therefore, Shane's Auto Parts cannot reject the entire shipment as it still needs the undamaged ten tires. However, it has the option to inspect the tires and negotiate a reduction in price for the ten damaged ones. Therefore, the best choice is to accept the shipment with a reduction in price.

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