Jonathan Sells Crates of Tomatoes on Board the SS Apapa

question 95

Multiple Choice

Jonathan sells crates of tomatoes on board the SS Apapa to Margaret.At the time of the sale,both parties are unaware that the crates were washed overboard.What is the status of the contract between Jonathan and Margaret?

• A)Jonathan is still the owner of the shipment.Jonathan bears the loss and will have to refund Margaret's money.
• B)Margaret has to pay the agreed price and recover from her insurance.
• C)The ownership passed to Margaret,but Jonathan is still in possession,and so he is liable.
• D)Margaret is the new owner of the tomatoes and has to bear the loss.
• E)Margaret may sue Jonathan for the tort of deceit.

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Definitions:

Total Revenue

The complete revenue a company accrues from its sales activities or service offerings throughout a designated period.

Total Cost

The sum of fixed and variable costs incurred in the production of goods or services.

Profit-Maximizing Level

The point at which a business achieves the highest difference between total revenue and total cost, leading to maximum profit.

Profit-Maximizing Price

The price level at which a firm maximizes its profits by balancing its production costs with the perceived value to customers, ensuring the highest possible profit margin.