Assuming a Buyer That Is Insolvent Has Breached a Contract

question 18

Multiple Choice

Assuming a buyer that is insolvent has breached a contract by not paying for goods that are in transit,which of the following may occur?

• A)The carrier may stop delivery regardless of the quantity shipped.
• B)The carrier may stop delivery,but only if the quantity shipped is a large shipment.
• C)The carrier may stop delivery,but only if the buyer expressly agreed in a signed writing to the remedy of stopping shipment.
• D)The carrier may stop delivery,but only if ordered to do so by a bankruptcy judge.
• E)The carrier may not stop delivery under any circumstances.

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Definitions:

Manufacturer

is a person or company that makes goods for sale, especially on a large scale, using machinery and labor.

Drunk Driving

The criminal act of operating a vehicle while impaired by alcohol or other drugs, beyond the legal limit.

Negligence

The failure to exercise reasonable care to avoid causing injury or loss to another person, resulting in liability for any damages caused.

Likely Defence

A plausible argument or strategy used in legal proceedings to refute claims or charges against a defendant.