Mansfield Dairies Entered into a Contract with Aratez,Inc

question 25

Multiple Choice

Mansfield Dairies entered into a contract with Aratez,Inc.,a dairy product food processing company,to provide dairy products for a period of four years.The contract included a provision for a one-year limitation period in case of breach.But with less than a year left on the contract,Mansfield Dairies stopped shipment of milk products to Aratez,Inc.Under the UCC statute of limitations,which of the following would be true with reference to Aratez,Inc.'s right to bring a lawsuit against Mansfield Dairies?

• A) The lawsuit can be filed any time within one year from the breach.
• B) The lawsuit can be filed only after the expiration of the contract.
• C) The lawsuit cannot be filed as there was less than a year left to complete the contract.
• D) The lawsuit can be filed any time within four years from the breach.

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Definitions:

Discount Rate

This is the rate of interest utilized in the process of discounted cash flow analysis to calculate the current value of future cash flows.

Received

Amounts of money or assets that have been taken in by an individual or organization.

Years

Units of time measuring the duration or length of events or intervals typically consisting of 365.25 days in the Gregorian calendar.

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth over time.