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12. Which of the following is accurate?
The trailer company offered to install a spare tire on Monday when its service department would open, but the general replied that he did not want the trailer and would purchase another one elsewhere.
In a signed writing, a retired general contracted to purchase a 25-foot travel trailer from a trailer company for $15,000, cash on delivery no later than June 1. The general arrived at the trailer company's sales lot on Sunday, May 31, to pay for and take delivery of the trailer, but refused to do so when he discovered that the spare tire was missing.
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If the buyer has rejected goods because of defects, the seller may within the time originally provided for performance «cure» by giving reasonable notice of her intention to do so and making a new tender of conforming goods, which the buyer must then accept. UCC § 2-508.
A is correct. Under the UCC perfect tender rule, when a delivery under a contract for the sale of goods fails to conform in any respect to the contract, the buyer has the right to reject the delivery. The seller, however, must be given an opportunity to cure the defective delivery if the time for performance has not yet expired. Here, when the trailer company presented to the general a trailer that was missing a spare tire, the general was entitled to reject the trailer because of its non-conformity with the contract. However, the contract allowed for «delivery no later than June 1,» which means that the trailer company had the right to offer to cure the defect until the following day, June 1. Thus, the company's offer to install a spare tire was a reasonable offer to cure the defect.
B is incorrect. This answer is only partially correct. The general did have the right to reject the trailer pursuant to the perfect tender rule, but not the right to immediately terminate the contract. Rather, the company first had the right to offer to cure the defect by the time originally allowed for performance, which was the next day. The company's offer to replace the spare tire the next day thus prevented the general from having the right to terminate the contract.
C is incorrect. In the event of a defect, the perfect tender rule allows the buyer to reject all, accept all, or accept any of the commercial units and reject the rest. As such, the general was not required to accept the trailer initially. However, there is an opportunity for the seller to cure. Thus, the ability to cure does not negate the buyer's ability to reject, although a successful cure will require the buyer to accept. Thus, the fact that the company had the ability to cure upon delivering the defective trailer does not automatically prevent the general from being permitted to reject.
D is incorrect. The perfect tender rule allows the buyer to reject any goods that fail to conform to the contract in ANY way, not just defects that substantially impair the value of the goods.