InOrkal Industries V

question 392

Multiple Choice

InOrkal Industries v. Array Connector, where Orkal bought parts from Array by sending an order form, but Array confirmed with its own form that contained different terms. Orkal did not object to the different terms until litigation arose later at which point the added terms mattered. The courts held that under the UCC:

• A) the buyer, Orkal, controlled the terms, so the original order form controls
• B) the buyer, Orkal, controlled the terms, so the original order form controls;Array could have forced a change by requiring Orkal to recognize its different terms, but it failed to do so
• C) the seller, Array, controlled because Orkal did not object to the change in terms when the contract was formed
• D) the seller, Array, controlled because under UCC 2-207, a sellers terms always control
• E) none of the other choices are correct

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Definitions:

Treasury Bills

Short-term government securities with maturities of one year or less, sold at a discount to their face value.

Market Efficiency

A concept in financial economics that describes how well market prices reflect all available information, leading to assets being properly priced and markets allocating resources efficiently.

Financial Decision Maker

An individual or group responsible for making investment, financing, and dividend decisions within an organization.

Expected NPV

Projected Net Present Value; an estimation of a project's current value based on expected future cash flows discounted at the project's cost of capital.