ABC,IncCalls the Widget Corporation of America to Order 400 Widgets

question 65

Multiple Choice

ABC,Inc.calls the Widget Corporation of America to order 400 widgets at $2 a widget.Widget accepts the oral order and then sends out an order confirmation form,with the pre-printed name Widget Corporation of America on the top of the form.The form states that an order has been received for "300" widgets and that it will be filled promptly.

• A)The confirmation fails to meet the UCC writing requirement, because it isn't signed.
• B)ABC can enforce the contract for 300 widgets, but not for 400 widgets.
• C)If ABC signs and returns the form, it will be able to sue for the extra 100 widgets later.
• D)The contract is enforceable for 400 widgets, because it has been partially performed.

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Definitions:

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, calculated by subtracting inventories from current assets, then dividing by current liabilities.

Accounts Receivable

Amounts owed to a company by customers for goods or services delivered on credit.

Current Ratio

A liquidity measure that evaluates a company's ability to pay short-term obligations with its current assets.

Book Values

The net value of a company's assets, subtracting the total liabilities from the total assets.