When may a buyer revoke acceptance of goods under UCC 2?

• A. If there is no noticeable defect
• B. If the goods have a latent defect causing substantial impairment of value
• C. If the buyer inspected and accepted
• D. If the seller refuses to ship replacement goods

Answer: (B)

Under UCC 2-608, a buyer may revoke acceptance if a nonconformity substantially impairs the value of the goods and the defect was not discoverable before acceptance (a latent defect), and the revocation is made within a reasonable time after discovery. A latent defect that significantly reduces value fits this rule because it wasn’t detectable by reasonable inspection before acceptance, yet it alters the bargain in a material way. This is the situation the option describes.

The other scenarios don’t fit revocation of acceptance. If there’s no defect, there’s nothing to revoke. If the defect is latent but substantial and discovered after acceptance, revocation is available within a reasonable time after discovery; simply stating that the buyer inspected and accepted doesn’t by itself justify revocation unless a latent defect was later found. Finally, a seller’s refusal to ship replacement goods is a separate breach/remedy issue, not the grounds for revoking acceptance.