Answer :
Final answer:
The perfect tender rule typically requires the non-breaching buyer to reject non-conforming goods, although contract terms may affect its application. Negotiations may take place, but are not required by the rule itself, and imperfect information can complicate buyer and seller interactions.
Explanation:
The perfect tender rule stipulates that a seller must deliver goods that meet the exact terms of a contract. In the context of this rule, the non-breaching buyer's option to accept or reject non-conforming goods is not optional but mandated. Therefore, the correct answer is that the perfect tender rule requires rejection (b) of the non-conforming goods. However, in practice, the parties involved may negotiate to reach a mutually acceptable solution, but the rule itself does not require this. The contract terms may provide for specific remedies or actions in the event of non-conforming goods, affecting the application of the perfect tender rule.
It's important to note that in some cases, buyers who fail to reject non-conforming goods within a reasonable amount of time may lose their right to reject them later. This is especially relevant in markets where imperfect information exists, complicating negotiations between buyers and sellers regarding the price and quality of goods.
