In Which of the Following Circumstances Would the Buyer or Seller

question 25

Multiple Choice

In which of the following circumstances would the buyer or seller be permitted to treat the contract as breached and cancel?

• A)Seller delivered conforming goods, but from another manufacturer because he ran out of the brand ordered.
• B)Seller delivered the goods to a truck line when railroad delivery had been specified, but the rail line was not running on a suitable schedule.
• C)Seller delivered a box of badly overripe pears that were part of an order for 12 "fruits of the month," one to be delivered during the first week of each month for a year.
• D)Seller failed to deliver Volume 3 of a set of three books after repeated requests by the buyer.

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Definitions:

Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including all non-owner changes in equity not resulting from investments by owners and distributions to owners.

Noncumulative Preferred Stock

A type of preferred stock where dividend payments are not accrued if they are not declared by the company's board in a particular period.

Earnings Per Share

A financial metric used to measure the profitability of a company, calculated by dividing net income by the number of outstanding shares.

Common Stock Split

A corporate action in which a company divides its existing shares into multiple shares to increase the number of shares.