Which of the Following Was the Result in the Case

question 10

Multiple Choice

Which of the following was the result in the case in the book involving Tempur-Pedic,the manufacturer of mattresses,when Tempur-Pedic sought to stop the sale of mattresses that Tempur-Pedic has donated to a charity for victims of Hurricane Katrina and attempted to recover mattresses sold by the charity involved?

• A) That the charity had void title under the UCC and could not transfer good title, and that Tempur-Pedic could recover all the mattresses both from the charity and from third-party purchasers.
• B) That the UCC did not apply because a charity was involved and that Tempur-Pedic was entitled to a temporary restraining order pending trial because of the likelihood that it would prevail based on fraudulent transactions.
• C) That under the UCC, Tempur-Pedic was entitled to a temporary restraining order because of the likelihood that it could show at trial that mattresses were not sold to a good-faith purchaser.
• D) That under the UCC, Tempur-Pedic would lose because the mattresses were sold to a good-faith purchaser for value.
• E) That the UCC did not apply because a charity was involved and that Tempur-Pedic would lose because movable goods were involved.

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Definitions:

Equivalent Units Of Production

A concept in cost accounting used to allocate costs to partially completed goods, based on the amount of work done on them.

Equivalent Units Of Production

A calculation used in the production process to equate the amount of work done on partially finished goods to the quantity of completed goods.

Process Costing

A method of costing used to ascertain the cost of a product at each process or stage of manufacture.

Direct Materials

Raw materials that are directly traceable to the production of a specific product or service.