Lon's GPS Inc

Essay

Lon's GPS Inc., orders 500 Class A widgets to be installed in GPS units it is manufacturing. When delivery is made on Monday, the widgets delivered are Class
B. Lon's signs a receipt accepting the nonconforming shipment. The next day, Lon's installs some of the Class B widgets and finds that they perform with half the accuracy of the Class A widgets. What, if any, options does Lon's have?
In most cases when a shipment of nonconforming goods is accepted, the buyer may seek to adjust the price, if applicable, but forfeits the right to subsequently reject the goods. In this situation, however, the UCC provides that if nonconforming goods are accepted and the nonconformity is found to substantially impair the value of the goods, the buyer may in fact revoke acceptance if the buyer does so within a reasonable time.