Skyline Builders and Pine Lumber Had a Contract, Calling for Pine

question 42

Multiple Choice

Skyline Builders and Pine Lumber had a contract, calling for Pine Lumber to deliver a certain quantity of bricks to Skyline's place of business on the first of every month for one year. Pine delivered the bricks one week late for the first six months, but Skyline did not object. When Pine delivered the bricks one week late, as usual, in the seventh month, Skyline attempted to cancel the contract because of the late delivery. Which of the following is true about this scenario?

• A) Pine will have to return the delivery fee of the first six months because it broke the contract.
• B) Skyline does not have the legal right to modify the contract.
• C) Pine is not in breach because the delivery was made at the intended place of business.
• D) Skyline has waived its right to cancel the contract.

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Definitions:

Further Process

The subsequent operations or steps taken to enhance or complete the production of goods.

Variable Cost Concept

The variable cost concept implies costs that vary directly with the level of production or sales volume, such as materials and labor.

Markup

The amount added to the cost price of goods to cover overhead and profit when determining the selling price.

Total Cost Concept

An approach that takes into account all costs associated with the production and distribution of goods or services.