Klint Microsystems, a Microprocessor Manufacturer, Was Contracted by Zeitar Studios

question 10

Multiple Choice

Klint Microsystems, a microprocessor manufacturer, was contracted by Zeitar Studios to manufacture specially designed microchips to be used in an audio engineering process. Zeitar was to pay Klint $300,000 as per the contract. Klint decided to redesign their existing microchips and make them suitable for Zeitar. While the finished microchips were being shipped via a carrier, Klint was informed of Zeitar's insolvency. Klint cancelled the shipment before it was delivered. Klint then resold the chips to another studio where they had to settle for $150,000 as the chips were now only suitable for specific audio engineering processes. What legal action can Klint take against Zeitar?

• A) sue and recover lost profits
• B) sue to recover purchase price
• C) get a court order asking for specific performance
• D) exercise the buyer's right to cover

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