Which of the Following Is Correct with Respect to Consequential

question 31

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:

Accounting Equation

The foundational principle of accounting stating that assets equal liabilities plus equity, thus maintaining the balance of a company's financial statements.

Identification Codes

Unique codes or sequences of numbers/letters used to identify specific items, products, employees, or locations within a system.

Accounts Receivable

Money owed to a company by its clients or customers for goods or services already delivered.

Journal Entry

Definition: A record in accounting that represents a transaction and its effect on various accounts in the double-entry bookkeeping system.