Sheps & Shaps LLP Signed a One-Year Contract Under Which

question 32

Multiple Choice

Sheps & Shaps LLP signed a one-year contract under which it was to receive a weekly delivery of 10 cartons of 8 x 11 bond paper and 5 cartons of 11 x 14 bond paper for a monthly fee of $700.The contract expired two months ago,but Sheps & Shaps continued to accept two additional deliveries.Given these circumstances,which of the following statements is true?

• A) The Sale of Goods Act will imply a continuing contract between the parties on the same terms as the previously existing contract.
• B) The contract has expired,and therefore Sheps & Shaps is not required to pay for the two additional deliveries.
• C) If the parties have contracted in the past,it may be possible to imply that their contract remains the same.
• D) The business exception rule will impose a requirement that Sheps & Shaps pay a reasonable price for the paper.

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Definitions:

Cost Reduction

The process or strategy of lowering expenses incurred by a business in order to improve profitability without compromising the quality of its products or services.

Action Research Approach

A participatory form of research aimed at solving immediate problems while focusing on the implementation of solutions in a cyclical process.

Organizational Change Process

A systematic approach in an organization to transition from its current state to a desired future state to enhance efficiency, effectiveness, or performance.

Appreciative Inquiry

A method of organizational change that focuses on identifying what works well, analyzing why it works, and doing more of it.