Hare Corporation Sends an Offer to Tortoise Inc

question 15

Multiple Choice

Hare Corporation sends an offer to Tortoise Inc.to purchase a widget through the mail.Hare hasn't heard from Tortoise for two days,so when Fox Company calls them on the phone and offers them the widget at a better price,they accept.They then call Tortoise to revoke the offer,but find that they have already mailed an acceptance.Which of the following is true?

• A)Hare only has to pay Fox because the contract was created first.
• B)Hare only has to pay Tortoise because the postal rule takes precedence.
• C)Hare has to pay both companies because they have created contracts with both.
• D)Hare does not have to pay Tortoise because they revoked the contract before receiving the letter.
• E)Hare does not have to pay Fox because their communication was non-instantaneous.

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Definitions:

Goods Available

The total quantity of goods that a company has for sale, including both products on hand and those being produced.

Gross Profit Rate

A financial metric that calculates the percentage of sales revenue remaining after deducting the cost of goods sold.

Sales Returns

Refers to the process of products being returned by customers to the seller for a refund or exchange.

Freight-In

The cost associated with transporting goods or materials into a business, which is often added to the cost of inventory.