Fact Pattern 17-1 Farmers Produce, Inc

question 33

Multiple Choice

Fact Pattern 17-1 Farmers Produce, Inc., and Growers Market enter into a contract for the delivery of locally grown fruits and vegetables. The parties use a standard Farmers Produce form that contains some of the terms the parties agree on but not others. Some of the produce spoils before it can be cooked, served, and eaten, or sold. Growers Market refuses to pay for the spoiled goods.
Growers Market sends in an order to Farmers Produce for the delivery of locally grown fruits and vegetables. Because of an early freeze, some of the locally grown fruits are not available. Farmers Produce substitutes some fruits from outside the contract definition of "local" and includes a notice that they are making an accommodation shipment due to the freeze. Farmers Produce

• A) accepted the offer and breached the contract by sending nonconforming goods.
• B) accepted the offer but did not breach the contract because of the note .
• C) did not accept the offer because the acceptance was different.
• D) has an opportunity to find the locally grown fruit and send it as soon as possible.

---

Definitions:

Annual Payments

Annual payments refer to the amount paid every year, either as an obligation, such as a subscription, or as part of a financial arrangement like a loan.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation each year over the asset's useful life.

Face Value

The nominal or dollar value printed on a security or financial instrument, such as a bond or stock.