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Alpha Electronic Components, Inc., ships 100,000 silicon chips to Beta E-Products Corporation. The chips arrive a week early, on a Friday that is extremely busy on Beta’s receiving dock. Beta’s dockworkers check the bill of lading against the quantity marked on the boxes, but do not examine the chips. The chips are then put in the back of the warehouse until needed in the plant. The next week, when the chips are sent to the plant and unpacked, Beta’s plant manager discovers that the quality is less than that stated in the parties’ contract. Beta contacts Alpha to inform it of the defect. Does Beta have any remedies? If so, what are they? If not, why not?

Financial Management, Finance

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