Reference no: EM131657940

Question: In the spring of 1991 Vince Ford, a retailer, contracted with a wholesaler, Starr Fireworks, for the purchase of various types of fireworks at an agreed price of $6,748.86. In May 1991, Starr delivered the 138 cases of fireworks in one lot to Ford's warehouse in Lusk, Wyoming. Ford did not immediately inspect the fireworks; instead, he distributed them to his retail outlets throughout Wyoming for resale to the public. Approximately 10 days after the fireworks were distributed to the retail outlets, Ford discovered that some fireworks were unsalable because of water damage and packaging problems. However, Ford did not inspect the remainder of the fireworks from the shipment. Ford telephoned Starr's representative to report the problems. Although Ford claimed that he instructed his employees not to sell any products received from Starr, a month later one of his stores sold several cases of the fireworks that had been purchased from Starr to another fireworks retailer.

The buyer reported no problem with those fireworks, and they were subsequently resold to customers without reported problems. After several unsuccessful attempts by Starr representatives to pick up the fireworks, they did pick up 10 cases of fireworks, worth $1,476.87, on August 3, l991; at that time Ford signed an acknowledgment that he still owed $5,251.99 to Starr. Ford claimed to have returned the remaining fireworks to Starr's Denver office on August 13, 1991. He said that no one was available in the office so he left the fireworks outside a side door; Starr never received those fireworks. Starr brought suit to recover the balance due on the fireworks that Ford had acknowledged retaining. Ford claimed that he had rejected the entire shipment on the grounds they were unmerchantable and counterclaimed for damages he asserted he had sustained. Ford contended that his inspection of some of thefireworks disclosed packages with torn wrappings, mold or mildew on some fireworks, and paper wrapping that fell apart exposing the fireworks. Ford argued that from this sampling it was reasonable to assume all the goods delivered by Starr were unmerchantable. Did Ford make an effective rejection of the entire shipment?