Klint Microsystems, a Microprocessor Manufacturer, Was Contracted by Zeitar Studios

question 20

Multiple Choice

Klint Microsystems, a microprocessor manufacturer, was contracted by Zeitar Studios to manufacture specially designed microchips to be used in an audio engineering process.Zeitar was to pay Klint $300, 000 as per the contract.Klint decided to redesign their existing microchips and make them suitable for Zeitar.While the finished microchips were being shipped via a carrier, Klint was informed of Zeitar's insolvency.Klint cancelled the shipment before it was delivered.Klint then resold the chips to another Studio where they had to settle for $150, 000, as the chips were now only suitable for specific audio engineering processes.
-What legal action can Klint take against Zeitar?

• A)sue and recover lost profits
• B)sue to recover purchase price
• C)get a court order asking for specific performance
• D)exercise the buyer's right to cover