Mulligan Domestics Co

question 30

Multiple Choice

Mulligan Domestics Co.breached a contract by refusing to accept its order for 60 bolts of fabric from Wellington Mills,although the fabric met the contract specifications.In this situation,Wellington Mills

• A)has at least four remedies under the UCC.
• B)may resell the fabric to someone else and,if it sues Mulligan,Wellington Mills will be awarded the full contract price.
• C)may choose not to resell the fabric and settle for the difference between the contract price and the market value.
• D)would be awarded consequential damages by most courts.

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Definitions:

Normal Debit Balance

The expected balance type of an account that is increased by a debit, typical for assets, expenses, and losses.

Withdrawals

Money taken out from a bank account, or the act of taking out funds from a business by its owners for personal use.

Expenses

Outflows or other uses of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major operations.

Formal Account

An organized financial record of transactions over a period for an individual, company, or entity, maintained in a structured format.