Fruitko, Inc., ordered from Orchard, Inc., 500 bushels of No. 1 Royal Fuzz peaches, at a specified price, "for prompt shipment." Orchard promptly shipped 500 bushels, but by mistake shipped No. 2 Royal Fuzz peaches instead of No. 1. The error in shipment was caused by the negligence of Orchard's shipping clerk. Which of the following best states Fruitko's rights and duties upon delivery of the peaches?
Orchard's shipment of the peaches was a counteroffer and Fruitko can refuse to accept them. Orchard's shipment of the peaches was a counteroffer but, since peaches are perishable, Fruitko, if it does not want to accept them, must reship the peaches to Orchard in order to mitigate Orchard's losses.  Fruitko must accept the peaches because a contract was formed when Orchard shipped them. Although a contract was formed when Orchard shipped the peaches, Fruitko does not have to accept them