Julie Was Told by ComputerLand That If She Were to Purchase

question 18

Multiple Choice

Julie was told by ComputerLand that if she were to purchase 10 or more USB keys,she would receive a free USB hub in the mail.However,shortly thereafter,the supplier of such hubs went out of business and could no longer fill orders.Then Julie sued ComputerLand,who used "frustration" in its defence.Which of the following is true?

• A)Frustration is impossible because it is too late for rescission.
• B)The manufacturer of the USB keys and hubs would be liable.
• C)Since the source is destroyed,the agreement is frustrated.
• D)Since Julie did not specify the source,the agreement is not frustrated.
• E)Since the carrying case is free,this agreement lacks consideration.

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Definitions:

Optimal Plant Size

The scale of production at which a firm can produce goods at the lowest average cost, maximizing efficiency.

Fixed Factors

Resources in production that cannot be easily increased or decreased in the short term, such as land or certain machinery.

Capital-Intensive

A characteristic of industries or businesses that require large amounts of capital investment in machinery and equipment relative to labor to produce goods or services.

Firm Costs

All the expenses incurred by a company in the production and sale of goods or services, including raw materials, labor, and overhead.