Case summary: Company NEPG contracted with company SS to supply stylets and nozzles to company KY. However, the contract did not make any reference to KY or required its acknowledgement. NEPG further contracted with company SS for acquiring parts from company IS. The terms of the contract stated that before shipment, company IS will obtain company NEPG’s acceptance on conforming goods. NEPG will certify the shipment according to KY’s specification. And on delivery, KY will inspect the goods. After nearly six transactions, NEPG refused to make payments as the material supplied by SS was rejected by KY.
To find: The impact of the UCC acceptance rules on the action of the parties.
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