Highland Supermarkets Has Come Up with a Promotional Idea to Have

question 2

Multiple Choice

Highland Supermarkets has come up with a promotional idea to have all its employees dress in kilts in the month of May. It arranges for the hire of 500 kilts from Clover Costumes Co for £7,000. Upon delivery, Highland is required to sign an invoice on the back of which are printed Clover's terms and conditions of hire, which Highland doesn't bother to read. Clause 58 of the contract stipulates that the garments must be returned within one week after the end of the month and that any delay will result in a holding fee of £2 per day per garment being charged. Highland's promotional idea is a complete failure and they decide to abandon it. The kilts are collected in the middle of May but are not sent back until the end of the second week of June, four days too late. Clover requests Highland pay the holding fee of £4,000, but Highland alleges the term has not been validly incorporated into the contract. Is Highland right?

• A) Yes, the term was not drawn to Highland's attention.
• B) Yes, the term is unfair.
• C) Yes, notice of the term was not given before or at the time of contract formation, but only at the time of delivery.
• D) No, the term has been validly incorporated by signature.

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Definitions:

Sales Revenue

Money a company makes from its merchandise sales or services rendered.

Service Charge Expense

Service charge expense refers to fees charged for specific services provided, often recognized as an expense in accounting records.

Accounts Receivables

Sums due to a company from its clients for products or services provided but not yet compensated for.

Factor

A financial intermediary that purchases receivables from businesses, providing them with immediate cash flow.