If a buyer has been given nonconforming goods and rejects them, what type of response is viewed as a counteroffer?

In this scenario, the correct response is viewed as a counteroffer because it indicates the buyer's intention to reject the nonconforming goods while simultaneously proposing a different course of action or terms. By sending a rejection of the goods via fax, the buyer effectively communicates their dissatisfaction with the original terms of the sale and suggests an alternative, such as negotiating for conforming goods or another solution.

This response implies that the buyer is not merely accepting the situation as it stands but is actively engaging in an attempt to reach a different agreement, which characterizes a counteroffer. In contract law, a counteroffer is significant because it rejects the original offer and puts forward a new proposal for consideration.

Returning the goods at the seller's expense, issuing a refund request, or acknowledging receipt of the goods do not signify a counteroffer. They are more straightforward actions taken in response to nonconforming goods without suggesting new terms or indicating a desire to renegotiate the contract. Thus, these actions do not foster negotiation or proposal of alternative terms, making them distinct from the act of sending a rejection by fax, which serves as a counteroffer.