Quality Scrap Company Contracts to Provide Ten Tons of Steel

question 69

Multiple Choice

Quality Scrap Company contracts to provide ten tons of steel at $500 per ton to Rendered Materials, Inc. An unforeseen shortage occurs suddenly, making it impossible for Quality to fulfill the contract for less than $5,000 per ton. The firm's best defense against performing the contract is that​

• A) ​performance of the contract is commercially impracticable.
• B) ​procuring the steel would force the company into bankruptcy.
• C) ​the law has rendered performance of the contract illegal.
• D) ​the specific subject matter of the contract has been destroyed.

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Definitions:

Self-Delusional Thought

A false belief or thought process maintained despite evidence or reality to the contrary, typically serving as a defense mechanism.

Primacy Effect

The tendency to remember information at the beginning of a list or sequence better than information in the middle or at the end.

Fundamental Attribution Error

A cognitive bias that involves overestimating the effect of personality or disposition and underestimating the effect of situational factors when interpreting the behaviors of others.

Defensive Attribution

A psychological process by which individuals tend to attribute more blame to victims and less to perpetrators when they see themselves as similar to the victim.