Julia Pitt Runs a Boutique That Specializes in Luggage and Travel

question 105

Multiple Choice

Julia Pitt runs a boutique that specializes in luggage and travel items.Julia contacts Tumi Luggage about carrying its line of messenger satchels.The Tumi representative tells Julia that Tumi would be happy to sell her 100 Tumi Black Messenger bags for $318 each.Julia is happy with the price and asks Tumi to send the bags.The Tumi representative then faxes a confirmation of the shipment of the 100 bags at $318 each.Julia receives the fax.When the bags arrive,Julia contacts Tumi and says there is a business downturn and that she does not want the bags and that there was no contract anyway.

• A)Julia is correct; the contract requires some type of authentication from Julia to be enforceable.
• B)Julia is correct; the contract required more than a fax to have a sufficient record.
• C)Julia is incorrect; she and Tumi have a valid and enforceable contract.
• D)both a and b

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Definitions:

Disaggregate

To break down into smaller components or elements for analysis or examination.

Financial Statement

A written report that quantitatively describes the financial health of a company, including balance sheets, income statements, and cash flow statements.

Reportable Segment

Part of a company that can be clearly distinguished operationally and financially from other parts of the company, requiring separate reporting under certain financial reporting frameworks.

Financial Report

A formal record containing financial information of an entity, including statements of financial position, performance, changes in equity, and cash flow, for a specific period.