Ace Computers (AC)is a Manufacturer

question 54

Multiple Choice

Ace Computers (AC) is a manufacturer.It entered into a contract with a retailer,Reliable Computer (RC) for the sale of 100 new XYZ model computers at $1,000 each,for delivery in 6 months.AC would thus make a profit of $50,000.Six months later however,the XYZ model has become almost obsolete;its market price is only $100 at that time.RC refuses to accept or pay for those computers.If AC sues,how much should it be entitled to in damages? (Ignore any incidental expenses or cost savings to AC. )

• A) Nothing;when the XYZ model became almost obsolete,this excused RC from the contract.
• B) $50,000,the profit AC would have made had RC not breached the contract.
• C) $90,000,the difference between market price and contract price.
• D) $140,000,the lost profit plus the difference between market price and contract price.

Grasp the concepts behind retail location strategy and its impact on retail success.

Recognize the potential of digital and non-traditional retailing methods.

Learn about the environmental and ethical considerations in retail.

Understand the franchise model and the operation of service departments in retail.

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Definitions:

Ultimatum Game

A game in experimental economics where two players decide on the division of a sum of money, with one proposing the split and the other accepting or rejecting it.

Dictator Game

An experimental game in economics that tests individuals' behavior towards altruism and fairness, where one player (the "dictator") decides how to split an endowment between themselves and another player.

Market Transactions

The processes involved in buying or selling goods and services in a market between buyers and sellers.

Ultimatum Game

A game in experimental economics in which two players decide on how to divide a sum of money; one player proposes a division, and the other can accept or reject it.