In Orkal Industries V

question 141

Multiple Choice

In Orkal 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, sos 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 Orka di 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

Apply the concept of investment turnover and its impact on return on investment.

Distinguish between investment centers, profit centers, and cost centers.

Calculate and interpret residual income.

Understand the concept of transfer pricing and its approaches.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, including all interest payments and the repayment of principal.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuer.

Coupon Interest Rate

The annual interest rate paid on a bond's face value by the bond's issuer, representing the interest income received by bondholders.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, including all interest payments and the repayment of principal.