Bespoke Designs Inc

question 4

Multiple Choice

Bespoke Designs Inc.,a custom suit maker,has a contract to purchase its suiting fabric from ABC Textiles.The dye used in the most recent order of fabric from ABC appears to be slightly different from the sample agreed upon in the contract and from orders in the past and will not work with Bespoke's product line.The manufacturer insists that the material is the same as previous orders.What should Bespoke consider at this point?

• A) whether it makes business sense to sue ABC
• B) that failure to immediately sue ABC will result in giving up its right to sue
• C) the impact of the litigation on the industry
• D) whether it can prove that the breach was due to negligence on the part of ABC

---

Definitions:

Purely Competitive Industry

An industry with many sellers offering identical products, where no single seller can influence market price, leading to perfect competition.

Competitive Firms

Refers to companies operating in a market where there are many sellers and buyers, products are similar, and there is free entry and exit from the market.

Price Takers

Describes individuals or companies that accept the market price as given, without having the influence to alter the price of the good or service they are selling or buying.

Advertising

A marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service, or idea.