Question

Legal Services pays half of the price for a shipment of computers that remain with the seller, Digital Computers, Inc. Within ten days, Digital becomes insolvent. Legal Services can recover the goods if
A. the computers are identified to the contract.
B. Legal Services can describe the computers.
C. Legal Services cannot obtain cover.
D. Legal Services expected to obtain the computers within those ten days.

Answer 1

Answer:

A. the computers are identified to the contract.

Explanation:

The buyer has the  right to recover all the goods when the seller suddenly becomes insolvent. Also where the buyer wishes to receive all the goods and also a substantial prepayment is already made and then the buyer finds out the  seller has become insolvent.

Under the UCC Section 2-502, it allows the buyer to recover all the goods if the below  conditions are met:

• the goods or the items must be identified to the contract
• if the buyer had paid a part of the purchase price or have made full payment
• if the buyer is willing to pay if any balance due
• after the first installment, the seller must become insolvent.

Therefore, in the context, Legal Services can recover all the computers if the computers are identified to the contract.