Assume you ordered two Bose speakers for your home theater system from Sound Technologies, Inc. in New York. Sound Technologies shipped the speakers to you via UPS, C.O.D. (collect on delivery). You did not agree to a C.O.D. shipment of the speakers. When the speakers arrived, you refused to accept them because you were not able to inspect them before payment. Sound Technologies claimed that it had shipped conforming goods and that you breached the contract.
- Discuss your liability in this situation, and explain whether under the UCC you have a right to reject the shipment. Why or why not?
- Analyze whether you think you should have a legal and moral obligation to pay for the shipment.
- Now assume you accepted the goods and send the payment by way of e-money. Explain the laws that would apply to e-money transactions and the online banking services for the bank you conduct business with in your home state.