On February 29, 2012, the Mexican restaurant Dos Hermanos placed an order with McDonald’s Farms for "delivery of 1,000 white onions, at a total price of $450, with payment due within ten days of delivery." Upon arrival of the onions on March 4, 2012 Dos Hermanos found at least 50% of the onions were rotted and believed many more were in poor condition. However, Dos Hermanos needed the usable onions badly to make fajitas for the week. So, Dos Hermanos kept the onions. Then, on March 5 2012, Dos Hermanos wrote a check to McDonald’s Farms for $200 with the words "disputed debt – payment in full" on the check. Along with the check, Dos Hermanos submitted a separate letter explaining that $200 represented a more appropriate payment given some of the onions were in poor condition. On March 18, 2012, McDonald’s Farms cashed the check and sent a bill to Dos Hermanos for the remaining $250, with a note stating "your check is bogus." McDonald’s Farms then sues for the outstanding $250. (a) Discuss who wins, how much, and why. (5 points)
(b) What, if anything, could McDonald’s Farms have done differently? (2 points)
(c) Pursuant to the UCC, what else, if anything, could Dos Hermanos have done differently upon the arrival of the onions? (3 points)