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0 tracked cards Contracts

A retailer contracted to buy winter coats from a merchant manufacturer. Before delivery, the retailer learned that the manufacturer had stopped paying its fabric supplier and had missed shipments to other buyers. The retailer sent a written demand for assurance and temporarily suspended its own duty to provide store-label packaging materials.
Which statement is most accurate under UCC Article 2?

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The buyer must continue full performance after a proper demand regardless of insecurity. The buyer may demand adequate assurance whenever it has reasonable grounds for insecurity, and may suspend commercially reasonable performance while awaiting assurance. The buyer may demand adequate assurance only after the seller has already missed the delivery date. Adequate assurance must always be provided within one hour.

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