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:

Behaviourist

A proponent of a branch of psychology that studies observable behaviors, often through conditioning, without emphasizing internal processes.

Positive Outcomes

The beneficial results or effects of actions, decisions, or events, often measured in terms of success, progress, or improvement.

Responses

Reactions or behaviors of an organism in response to a specific stimulus or situation.

Organisms

Living entities that can carry out life processes independently, including animals, plants, and microorganisms.