Balls, Inc

question 394

Multiple Choice

Balls, Inc. sells all baseballs needed by Major League Baseball (MLB) . MLB agrees that prices and quantities will be determined at the beginning of each year. After 4 years, MLB decides its needs fewer balls and demands it be allowed to buy less. Balls demands MLB buy as much as in years before. If MLB sues under the UCC it will likely:

• A) lose because the contract modification it seeks is not negotiated in good faith
• B) lose because the contract modification it seeks is not supported by new consideration
• C) lose because baseball is a service and thus is not within the scope of the UCC
• D) win because the right to such a contract modification under the UCC is irrevocable without consideration
• E) none of the other choices

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Definitions:

Economic Outcome

The result of economic activities, often measured in terms of growth, employment, and inflation.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price in a specific time period.

Equilibrium Price

The price at which the quantity of goods demanded equals the quantity of goods supplied, commonly referred to as the market-clearing price.

Tax

A mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures.