Turtle World Orders 200 Small Sea Turtles from Reptile World

question 28

Multiple Choice

Turtle World orders 200 small sea turtles from Reptile World.After the sea turtles had been identified to the contract but before the risk of loss had passed to Turtle World,the turtles were released into the ocean by a militant animal rights group who broke into Reptile World to set the animals free.Under this scenario

• A)Turtle World cannot successfully sue because the contract is void.
• B)Turtle World can cover,then win a judgment against Reptile World for the difference between the contract price and the cover price,plus incidental and consequential damages,minus expenses saved.
• C)Turtle World can successfully sue for specific performance because sea turtles are everywhere.
• D)Turtle World is entitled to a judgment for compensatory damages,but not consequential damages.

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Definitions:

Value Of A Right

The value to shareholders of the right to purchase new shares issued by a company at a discount to the market price.

Rights Offering

A financial opportunity offered to existing shareholders to purchase additional shares at a discounted price before the new shares are offered to the public.

Rights Offering

An opportunity given to existing shareholders to purchase additional shares of the company's stock, often at a discount, before it is offered to the public.

Subscription Price

The cost at which existing shareholders can purchase additional shares before they are offered to the public, typically during a rights offering.