Ace Computers (AC)is a Manufacturer

question 23

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 relatively obsolete;its market price is only $600 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) $40,000,the difference between market price and contract price.
• D) $90,000,the lost profit plus the difference between market price and contract price.

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Definitions:

Good Organization

A well-structured entity with efficient processes, clear objectives, and effective communication among its members.

Good Planning

The process of defining objectives, strategies, and actions to achieve goals effectively and efficiently.

Competitive Advantage

The attribute that allows an organization to outperform its competitors, often due to unique resources, capabilities, or positioning.

Industry

A group of companies producing similar products or services, often categorized by their primary business activities.