Sam Has Contracted with Dave to Purchase Dave's Racing Bike

question 21

Multiple Choice

Sam has contracted with Dave to purchase Dave's racing bike with payment and delivery of the bicycle to be in 10 days.Three days later Sam hears that Dave is going to sell the bike to Gene in three days at a higher price.If Sam really wants the bike,what should he do?

• A) immediately sue for specific performance
• B) immediately seek injunctive relief
• C) immediately sue for compensatory damages
• D) immediately sue for consequential damages

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Definitions:

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales, indicating the potential for higher returns or risks.

Sales Decrease

A reduction in the quantity or value of items sold by a business within a particular period.

Financial Break-Even

Financial break-even is the point at which total revenues exactly cover total costs, leaving the business with neither profit nor loss, focusing on financial stability.

Initial Investment

The amount of money used to start a project, purchase an asset, or invest in a financial instrument, marking the beginning of the investment’s lifecycle.