Answer A is incorrect. This choice reaches the correct result for the wrong reason. Since the electric company had no right to reject the gas due to nonconformity under the circumstances, it could not waive this right. This is an installment contract governed by U.C.C. § 2-612 because it calls for a series of performances by the seller rather than a single performance. In an installment contract, the buyer can reject an installment that does not conform only if the installment substantially impairs the value of the goods to the buyer. The buyer under an installment contract does not have an unconditional right to reject nonconforming goods. In this situation, the value of the gas was not substantially impaired by the fact that its heat content was not 100. An adjustment in the price term to compensate the electric company because it had to burn more gas to generate a given amount of electricity was all that was required. Likewise, in an installment contract a minor discrepancy in the amount delivered does not give the buyer a right to reject-a right which he would otherwise have if this was an entire contract.

Answer C is incorrect. This is an installment contract governed by U.C.C. § 2-612. The electric company may not reject nonconforming goods unless the nonconformity substantially impairs the value of the installment. In this situation, the value of the gas was not substantially impaired by the fact that its heat content was not 100. An adjustment in the price term to compensate the electric company because it had to burn more gas to generate a given amount of electricity was all that was required. Likewise, in an installment contract, a minor discrepancy in the amount delivered does not give the buyer a right to reject-a right which he would otherwise have if this was an entire contract.

Answer D is incorrect. This is an installment contract governed by U.C.C. § 2-612. The electric company may not reject nonconforming goods unless the nonconformity substantially impairs the value of the installment. In this situation, a delivery of five percent less than was called for by the installment does not impair the value. The utility had no immediate need for the 10,000 cubic feet of gas which was not delivered in the installment. Moreover, the value of the gas was not substantially impaired by the fact that its heat content was not 100. An adjustment in the price term to compensate the electric company because it had to burn more gas to generate a given amount of electricity was all that was required.