Bridget Contracts with Hunter to Purchase $30,000 Worth of Goods

question 42

Multiple Choice

Bridget contracts with Hunter to purchase $30,000 worth of goods for her store.Hunter wants a clause in the contract stating that neither party will sue the other after one year from the date of breach of contract.Which of the following is true of this situation?

• A)Parties are not allowed to provide time limits in their sales agreements,since the UCC sets this time.
• B)Competent and informed parties can agree to set any time limit to sue for breach of contract.
• C)The courts must review the time limits the parties have determined in the sales agreement as reasonable.
• D)The UCC allows parties to shorten the time limit to bring a suit to a minimum of one year.

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Definitions:

Weighted-Average Method

An inventory costing method that averages out the cost of goods available for sale or use, by weighting inventory items according to their quantities.

Processing Department

A specific department within a manufacturing facility where goods undergo a particular process in the production cycle.

Weighted-Average Method

An approach to assess the cost of sold goods and concluding inventory by leveraging the average price of every unit available for purchase.

Ending Inventory

The value of goods available for sale at the end of an accounting period, not yet sold.