Amazon Ltd Is a UK Based Shipping Firm with a Large

question 14

Multiple Choice

Amazon Ltd is a UK based shipping firm with a large international clientele. Biscayne Co, an Irish lumber firm, which plans to ship an order of timber to Japan, calls Amazon to inform about their prices. Amazon replies that, for a shipment of timber to the Far East, the average price would be £95 per pound. After an hour of negotiations, Amazon says it is willing to reduce its price to £91 per pound for the large quantity Biscayne is planning to have shipped. An offer is immediately drawn up by an employee of Amazon. Accidentally, he uses a form normally used for international shipments in which all prices are quoted per kilogram. When Biscayne receives the offer for £91 per kilogram, they immediately accept, this being almost half the price Amazon stated on the phone. Has a contract been concluded and, if so, for which price?

• A) Yes, for £91 per kilogram.
• B) Yes, for £91 per pound.
• C) Yes, for £95 per pound.
• D) No, a contract has not been concluded.

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Definitions:

Accounting Actions

Activities or tasks performed by accountants or financial officers that relate to the process of recording, summarizing, and reporting financial transactions of a business.

Earnings Targets

Pre-determined goals for an organization's financial performance, often used to motivate and measure the effectiveness of management.

Debt Covenants

Agreements or clauses within a debt contract that impose certain conditions or restrictions on the borrowing party, aimed at protecting the lender.

Merger Target

A company that is considered a potential candidate for acquisition by another company.