Lummi Wholesale Ordered 16 Cases of Canned Codfish from King

question 33

Multiple Choice

Lummi Wholesale ordered 16 cases of canned codfish from King Cannery Inc. Since Lummi's account with King Cannery was overdue, King wouldn't release the 16 cases of cod unless they received "cash in hand" at the pick- up. Does King Cannery have a right to demand payment before the customer picks up their order?

• A) Yes, because the contract didn't stipulate credit terms.
• B) Yes, since the customer is perhaps insolvent.
• C) No, because a lien is not permitted where title has passed to the buyer.
• D) No, because the terms of credit have not expired.
• E) No, because past experience has been on an open account basis.

---

Definitions:

Dash Valve

A control valve, typically found in air brake systems of trucks, used to apply and release brakes.

Actuate

To cause a mechanical system or device to operate.

Air Tanks

Reservoirs used in pneumatic systems of vehicles, especially in air brake systems, to store compressed air needed for the operation of brakes and other components.