Which of the Following Is Correct with Respect to Consequential

question 58

Multiple Choice

Which of the following is correct with respect to consequential damages under the Code?

• A) Consequential damages include damages for destruction of a warehouse caused by the explosion of nonconforming goods.
• B) Consequential damages include damages for lost profits from a contract to resell goods which the seller never delivers.
• C) Particular needs of the buyer need to be made known to the seller before the seller can be held responsible for consequential damages relating to those needs.
• D) All of these are correct.

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Definitions:

High-low Method

A way to estimate the variable and fixed components of costs by analyzing the difference in costs between the highest and lowest activity levels.

Unit Produced

A measurement or quantity of goods manufactured during a specific period, often used to track production levels and efficiency.

Variable Cost

Expenses that vary directly with the level of production or sales volume, like materials and labor.

Utilities

Utilities refer to services such as electricity, water, and gas that are essential for communities and businesses to operate effectively.