Which of the Following Was the Result in the Text's

question 74

Multiple Choice

Which of the following was the result in the text's case involving Tempur-Pedic,a mattress manufacturer,which sought to stop the sale of mattresses it donated to a charity for Hurricane Katrina victims and to recover mattresses sold by the charity involved?

• A)That the charity had void title under the UCC and could not transfer good title,and that Tempur-Pedic could recover all the mattresses both from the charity and from third-party purchasers.
• B)That under the UCC,Tempur-Pedic was entitled to a temporary restraining order because of the likelihood that it could show at trial that its donated mattresses were not sold to a good-faith purchaser.
• C)That the UCC did not apply because a charity was involved and that Tempur-Pedic was entitled to a temporary restraining order pending trial because of the likelihood that it would prevail based on fraudulent transactions.
• D)That under the UCC,Tempur-Pedic would lose because the mattresses were sold to a good-faith purchaser for value.
• E)That the UCC did not apply because a charity was involved and that Tempur-Pedic would lose because movable goods were involved.

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Definitions:

Accounts Receivable

Money owed to a business by its clients (customers) for goods or services that have been delivered but not yet paid for.

Net Income

The total earnings of a company after subtracting all expenses, including taxes, from its total revenues.

Cash Flow

The total amount of money being transferred into and out of a business, especially concerning liquidity.

Current Assets

Resources anticipated to be turned into cash, sold, or used up within a year or throughout the typical operating cycle of the company.