Lon's GPS,Inc

Essay

Lon's GPS,Inc.orders 500 Class A widgets to be installed in GPS units they are 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 the Class B widgets 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 they forfeit 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 done within a reasonable time.