Law for Business 10th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 5

Maxwell Shoe Co., a wholesale shoe distributor, ordered a quantity of shoes from Martini Industries. When Maxwell Shoe received the shipment, it discovered that all of the shoes were cracked and peeling. Maxwell Shoe contacted Martini Industries and stated that it was rejecting the shipment because the shoes were defective. Maxwell Shoes wanted to ship the shoes back to Martini Industries but received no communication from Martini Industries regarding what was to be done with the shipment. Maxwell Shoe did not pay the remainder owed for the shipment and stopped payment on the check that had been initially issued for the order. Subsequently, Maxwell Shoe had the shoes refinished by another company and distributed and sold the shoes. Martini Industries sued for the value of the shipment. Did Maxwell Shoe accept the shipment of shoes and owe Martini Industries for the goods?