Acceptance and Rejection of Defective Products between Merchants

Hartz Seed Co. is a supplier of soy beans. Coleman contracted with Hartz for the delivery of one ton of soy beans, for delivery at Coleman’s plant. After delivery, Coleman began inspecting the soy beans for quality. There is a specific inspection testing protocol/procedure involved, and usually takes several weeks to complete because it involves growing some of the seeds. After one month, Coleman noticed several defects in the seedlings that were growing. Coleman immediately notified Hartz of the defects, and rejected the entire lot.

Hartz comes to you for advice concerning a possible action for breach against Colman. Specifically, Hartz asks whether Coleman has 1) accepted the goods, or 2) properly rejected the seeds. How do you advise Hartz? Use UCC provisions to support your answer/analysis.

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