Under the Doctrine of Commercial Impracticability,which Situation Would Not Excuse

question 43

Multiple Choice

Under the doctrine of commercial impracticability,which situation would not excuse the seller's performance?

• A) The seller forgot to include the cost of freight in a C&F contract.
• B) The seller's source of supply is no longer available because of a governmental embargo prohibiting an export from another country.
• C) The seller cannot deliver because severe flooding wiped out three-fourths of the state's produce.
• D) The seller's workforce is out on an unexpected strike.

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Definitions:

Accumulated Depreciation

This is the cumulative depreciation of an asset up to a single point in its life, reflecting how much of the asset's value has been used up over time.

Disposal Of Asset

Refers to the process of eliminating a fixed asset from the balance sheet due to sale, exchange, retirement, or loss.

Long-Lived Assets

Long-lived assets are tangible or intangible assets that a company intends to hold and utilize over a long period, typically more than one year, including property, plant, and equipment.

Insurance

Protection against financial loss from specific risks, such as accident, theft, or illness, through the transfer of risk to an insurer for a premium.