The Buyer and Seller Enter into a Sales Contract for the Sale

question 4

Multiple Choice

The buyer and seller enter into a sales contract for the sale of t-shirts.The contract provides that the 500 t-shirts will be an assortment of sizes and colors.The contract does not specify exactly what that assortment will be.The seller sends the buyer an assortment of various colors and sizes.Does the seller have the right to choose the assortment?

• A) No, since the contract did not specify the assortment, the buyer has the right to make the selection of the assortment.
• B) No, since the contract did not specify the assortment, the seller must fulfill the order under the accommodation shipment rule.
• C) Yes, since the contract did not specify the assortment, the seller can choose what to send to the buyer.
• D) Yes, but only if the seller makes their selection in good faith and within limits set by commercial reasonableness.
• E) Yes, the seller must choose the same assortment it chooses for its other customers with similar orders.

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Definitions:

All Equity

A financing structure where a company's capital structure is composed entirely of equity without any debt.

Repurchase Shares

The action taken by a company to buy back its own shares from the marketplace, reducing the amount of outstanding stock.

Borrowing

The act of obtaining funds from another party, often a financial institution, with a promise to repay the principal amount along with interest or other charges over a period.

All Equity

A financial structure where a company is financed entirely through equity without any debt.