Which of the Following Is Correct Regarding Wallace's Assertion That

question 8

Multiple Choice

Which of the following is correct regarding Wallace's assertion that Fran cannot recover the cost of the caps?

• A) Wallace is correct. Fran cannot recover because she has nothing in writing.
• B) Wallace is incorrect because the cost of the caps is insufficient to come within the requirement of a writing under the UCC.
• C) Wallace is incorrect because Fran has witnesses.
• D) Wallace is incorrect because Fran had already made the caps.
• E) Wallace is incorrect both because Fran had already made the caps and also because she had witnesses.

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Definitions:

Sensitive

Quick to detect or respond to slight changes, signals, or influences.

Sunk Cost

A cost that has already been incurred and cannot be recovered.

Differential Cost

The difference in cost between two alternative decisions or scenarios, important in the process of making financial decisions.

Book Value

The net value of a company's assets less its liabilities and preferred stock, often used to estimate the company's worth.