41. How may the bakery legally respond to the nonconforming tender?

B is correct. Because the contract authorizes the delivery of flour in separate lots to be separately accepted, the parties entered into an installment contract. UCC § 2-612 adopts a «substantial impairment» standard for determining whether a buyer can reject a particular installment or cancel the entire contract. A buyer can reject an installment if a nonconformity substantially impairs that installment and the nonconformity cannot be cured. Here the mill's tender of less than the contracted-for quantity did not amount to a nonconformity that substantially impaired either the value of the 16th installment or the whole contract. The mill's proposed cure, the delivery of the remaining 200 pounds on the following Monday, is sufficient given that the late delivery and the shortage will not significantly disrupt the bakery's business. Accordingly, the bakery must accept the delivery of the tendered 800 pounds of flour but may deduct from the price any damages for losses resulting from the late delivery.

A is incorrect. Because the contract authorizes the delivery of flour in separate lots to be separately accepted, the parties entered into an installment contract. UCC § 2-612 adopts a «substantial impairment» standard for determining whether a buyer can reject a particular installment or cancel the entire contract. A buyer can reject an installment if a nonconformity substantially impairs that installment and the nonconformity cannot be cured. A buyer can cancel the contract only when the nonconformity with respect to one or more installments substantially impairs the value of the whole contract. Here, the mill's tender of less than the contracted-for quantity did not amount to a nonconformity that substantially impaired the value of either the 16th installment or the whole contract. The mill's proposed cure, the delivery of the remaining 200 pounds on the following Monday, is sufficient given that the late delivery and the shortage will not significantly disrupt the bakery's business. Accordingly, not only must the bakery accept the delivery of the tendered 800 pounds of flour, it also must accept the remaining 200 pounds that the mill proposes to deliver on the following Monday.

C is incorrect. Because the contract authorizes the delivery of flour in separate lots to be separately accepted, the parties entered into an installment contract. UCC § 2-612 adopts a «substantial impairment» standard for determining whether a buyer can reject a particular installment or cancel the entire contract. A buyer can reject an installment if a nonconformity substantially impairs that installment and the nonconformity cannot be cured. Here the mill's tender of less than the contracted-for quantity did not amount to a nonconformity that substantially impaired either the value of the 16th installment or the whole contract. The mill's proposed cure, the delivery of the remaining 200 pounds on the following Monday, is sufficient given that the late delivery and the shortage will not significantly disrupt the bakery's business. Accordingly, not only must the bakery accept the delivery of the tendered 800 pounds of flour, it also must accept the remaining 200 pounds that the mill proposes to deliver on the following Monday.

D is incorrect. Because the contract authorizes the delivery of flour in separate lots to be separately accepted, the parties entered into an installment contract. UCC § 2-612 adopts a «substantial impairment» standard for determining whether a buyer can reject a particular installment or cancel the entire contract. A buyer can reject an installment if a nonconformity substantially impairs that installment and the nonconformity cannot be cured. Additionally, a buyer can cancel the contract only when the nonconformity with respect to one or more installments substantially impairs the value of the whole contract. Here, the mill's tender of less than the contracted-for quantity did not amount to a nonconformity that substantially impaired the value of the 16th installment or the whole contract. The mill's proposed cure, the delivery of the remaining 200 pounds on the following Monday, is sufficient given that the late delivery and the shortage will not significantly disrupt the bakery's business. Accordingly, the buyer has no right to reject the tender or to cancel the contract.