When a Seller Fails to Deliver Goods, Either by Being

question 415

Multiple Choice

When a seller fails to deliver goods, either by being too late to be useful or because the goods are nonconforming, the buyer is entitled:

• A) to nothing
• B) to a compensatory payment of $1000
• C) to buy substitute goods and recover the price difference
• D) to require the seller to find deliver new goods
• E) to sue for breach of confidentiality

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Definitions:

Units

A measure of quantity used to express the amount of a product, service, or resource, often used in production and inventory contexts.

Pretax Income

Income earned by a company before taxes have been deducted.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as raw materials and sales commissions.

Fixed Costs

Financial obligations such as rent, salaries, and insurance that do not fluctuate with changes in production or sales levels.