Penelope Agrees to Sell 100 Pounds of Sugar to Vito

question 60

Multiple Choice

Penelope agrees to sell 100 pounds of sugar to Vito in June. In May, Penelope discovers there is a major sugar shortage and she would have to pay her supplier 1000 times more than expected. She alerts Vito in May that she does not intend to sell him the sugar. This is an example of:

• A) Anticipatory repudiation
• B) Tendered repudiation
• C) Advance refusal
• D) Advance repudiation
• E) Preparatory refusal

---

Definitions:

Allowances

Reductions from the list price of goods or services, granted for various reasons such as defects or customer dissatisfaction.

Wage Base Limit

The maximum amount of income on which employees are required to pay certain taxes, such as social security taxes.

SUTA

The State Unemployment Tax Act, which mandates employers to pay state unemployment taxes to fund the unemployment compensation programs for workers in their state.

FUTA

The Federal Unemployment Tax Act (FUTA) is a United States federal law that imposes a payroll tax on employers to fund state workforce agencies.