Garfield Owns and Operates a Wholesale Business Called the Overseas

question 17

Multiple Choice

Garfield owns and operates a wholesale business called the Overseas Sporting Goods Store (OSGS) .He recently delivered a box of cricket balls to his twenty-year-old son,Imran,and a box of cricket outfits to another sporting goods store called Hit-for-Six.Because Garfield's store went into financial difficulties shortly after making those deliveries to Imran and Hit-for-Six,questions have arisen regarding the nature of those deliveries and in particular whether they were contractual sales.Which of the following statements is TRUE?

• A)Neither transaction can be a contract unless money was exchanged for the balls and outfits.
• B)As a matter of law,Garfield could not have had an intention to create legal relations when he entered into the transaction with Imran because Imran is his son.
• C)As a matter of law,the transaction with Hit-for-Six could not be an enforceable contract unless it was sufficiently evidenced in writing.
• D)Depending upon the facts,a court might be persuaded that the delivery to Hit-for-Six was not made with an intention to create legal relations.
• E)Even if it did not request the outfits,and even though it has not had any communication with Garfield,OSGS will be required to pay for the outfits unless it immediately sends them back to Garfield.

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Definitions:

Net Wealth

The total assets owned by individuals, businesses, or nations, minus any liabilities owed.

Consumption

The total amount of goods and services consumed by households and individuals in an economy.

Consumption Function

An economic formula that depicts the relationship between total consumption and gross national income, indicating how income affects spending.

Future Expectations

Anticipations or predictions about the economy or financial markets based on current events or trends that can influence consumer and investor behaviors.