Assuming a Buyer That Is Insolvent Has Breached a Contract

question 52

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 only if the quantity shipped is a large shipment such as a carload or truckload.
• B)The carrier may stop delivery on the entire shipment.
• C)The carrier may not stop delivery under any circumstances.
• D)The carrier may stop delivery only if ordered to do so by the bankruptcy judge.
• E)The carrier may stop delivery only if a signed writing exists by which the buyer agreed to the remedy of stopping shipment.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company’s earnings.

Expected Inflation Rates

The anticipated rate at which the general level of prices for goods and services will rise over a period of time.

Interest Rate

The percentage charged or paid for the use of money, typically expressed as an annual rate.

Inflation Adjustment

A modification made to the value of money to account for changes in purchasing power due to inflation.