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

question 29

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 they will honor the contract
• B) the demand for widgets has suddenly decreased and TT isn't sure they can sell the 50,000 widgets they ordered
• C) AWC's sole manufacturing plant has burned down on October 1^st, yet AWC insists that they will rebuild and honor the contract
• D) TT has found another manufacturer who can provide less expensive widgets of the same quality as AWC

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