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Fred's Fireplaces Enters into a Contract with Miguel's Patio Supply

Question 17

Multiple Choice

Fred's Fireplaces enters into a contract with Miguel's Patio Supply in which Miguel's agrees to purchase 20 fireplaces. Miguel fails to pay and Fred's Fireplaces withholds delivery. Did Fred's Fireplaces act appropriately?


A) No because withholding delivery is never appropriate.
B) No because filing a lawsuit is required before withholding delivery.
C) No because withholding delivery is appropriate in the event of breach only if the contract is for at least 50 units of goods.
D) No, because the UCC requires sellers to notify buyers within 100 days of withholding an order in the event of a breach.
E) Yes, because the UCC allows a seller to withhold delivery when a buyer breaches the contract.

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