Toy Tech (TT) Has Ordered 50,000 Aluminum Widgets from the Acme

question 34

Multiple Choice

Toy Tech (TT) has ordered 50,000 aluminum widgets from the Acme Widget Corporation (AWC) with delivery to be made on November 1. These widgets will be used in TT products to create toys for the holiday season. Under which circumstance may TT claim an anticipatory repudiation?

• A) The cost of aluminum has risen, lowering AWC's profit margin, yet AWC insists that it will honor the contract.
• B) The demand for widgets has suddenly decreased, and TT isn't sure it can sell the 50,000 widgets it ordered.
• C) AWC's sole manufacturing plant burned down on October 1, yet AWC insists that it will rebuild and honor the contract.
• D) TT has found another manufacturer that can provide less expensive widgets of the same quality as AWC's widgets.

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Definitions:

Ethernet

A group of computer networking technologies frequently utilized in local area networks (LAN), metropolitan area networks (MAN), and wide area networks (WAN).

DVI

A video interface technology designed to maximize the visual quality of digital display devices such as monitors and projectors.

VGA

Video Graphics Array, a standard for computer video display hardware resolution and color depth.

HDMI

High-Definition Multimedia Interface, a proprietary audio/video interface for transmitting uncompressed video data and compressed or uncompressed digital audio data from an HDMI-compliant source device.