Which of the Following Statements About Commercial Impracticability Is True

question 71

Multiple Choice

Which of the following statements about commercial impracticability is true?

• A)A collapse of a market for particular goods is generally sufficient to excuse nonperformance.
• B)A promisor must be able to establish that the event that makes performance impracticable occurred without his fault.
• C)If an event causes impracticability and a seller only has limited capacity to perform,the seller can allocate production and deliveries to the highest paying customers.
• D)Crop failures cannot give rise to impracticability because it is an inherent market risk.

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Definitions:

Cost Report

A financial report that details the costs incurred by a company during a specific period, often used in manufacturing to monitor production costs.

Relevant Range

The range of activity within which assumptions about variable and fixed cost behaviors are valid.

Car Washing Labour Cost

The expense associated with the human effort required in the process of cleaning cars.

Coefficient Of Determination

A statistical measure, represented as a number between 0 and 1, that indicates the proportion of the variance in the dependent variable that is predictable from the independent variable(s).