Question

5. New England Precision Grinding, Inc. (NEPG), sells precision medical parts in Massachusetts. NEPG to supply Kyphon. Inc. with stylets and nozzles. NEPG contracted with Simply Surgical, LLC, to obtain the parts form Iscon Surgicals, Ltd. The contract did not mention Kyphon or require Kyphon’s acceptance of the parts. Before shipping, Iscon would certify that the parts conformed to NEPG’s specifications. On receiving the parts, NEPG would certify that they conformed to Kyphon’s specification. On delivery, Kyphon would also inspect the parts. After about a dozen transactions, NEPG’s payments to Simply Surgical lagged, and the seller refused to make any further deliveries. NEPG filed suit in a Massachusetts state court against Simply Surgical, alleging breach of contract. NEPG claimed that Kyphon had rejected some of the parts, which gave NEPG the right to not pay for them. Do the UCC’s rules with respect to acceptance support or undercut the parties’ actions? Discuss.

Answer 1

UCC laws regulate sales of personal property in addition to other business transactions such as leasing equipment, borrowing money, setting up contracts, and selling goods.

Step-by-step explanation

According to UCC's Acceptance of goods, the product is considered accepted by the buyer when s/he retains/takes the product after a due inspection or fails to make an effective rejection of the product after a reasonable opportunity to inspect it. The company, NEPG had accepted predetermined consignments and has no proof of revoking acceptance. Therefore, the company must pay Simply Surgical for the previous orders.