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The UCC changes the common law of contracts in a number of respects, including requirements of good faith, modification, waiver, and delivery. Methods for the acceptance, rejection, and revocation of goods are also regulated. Once a good has been accepted, these provisions limit the ways in which an acceptance may be revoked.

Suppose that Craig Wind, a division of Craig Electric Co., decides to contract with Mana, an Indian wind turbine manufacturer, for offshore turbines to be installed along the eastern shore of the United States. The two parties begin negotiations, but problems soon arise regarding the shipment, type, and terms of acceptance of the control systems supporting the new offshore wind turbines.

Suppose that Craig inspects the first shipment from Mana, but when the inspector opens the first crate it becomes clear that instead of shipping control systems for offshore wind turbines, Mana instead has sent control systems for onshore turbines. Onshore turbines require a completely different control system to operate correctly. Craig decides to reject the shipment, and requests that Mana pay the inspection expenses. Who is correct?

Operation Management, Management Studies

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