Did computronics have legitimate reason

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Reference no: EM133577480

Computronics, a Pittsburgh company, makes audio decoder chips, one of the essential components used in the manufacturer of car steroes. Johnson Manufacturing contracts with Computronics to buy 10,000 chips on an installment contract with 2,500 chips shipped every three months, F.O.B. Pittsburgh via FedEx. At the time for the first delivery, Computronics delivers on 2,400 chips but explains to Johnson that even though the shipment is 4% short, the chips are of a higher quality than those specified in the contract and are worth 5% more than the contract price. Johnson accepts the shipment and pays Computronics the contract price. At the time for the second shipment, Computronics makes a shipment identical to the first. Johnson again accepts and pays for the chips. At the time for the third shipment, Computronics again ships 2,400 of the same chips, but this time Computronics sends them via UPS instead of FedEx. While in transit the chips are destroyed. When it is time for the fourth shipment, Computronics again sends 2,400 chips, but this time Johnson rejects the chips without explanation.

1. Did Computronics have a legitimate reason to expect that Johnson would accept the fourth shipment? Why or why.

Reference no: EM133577480

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