Fred's Fireplaces Enters into a Contract with Miguel's Patio Supply

question 15

Multiple Choice

Fred's Fireplaces enters into a contract with Miguel's Patio Supply in which Miguel's agrees to purchase 20 fireplaces.Miguel fails to pay and Fred's Fireplaces withholds delivery.Did Fred's Fireplaces act appropriately?

• A)No,because the UCC requires sellers to notify buyers within 100 days of withholding an order in the event of a breach.
• B)Yes,because the UCC allows a seller to withhold delivery when a buyer breaches the contract.
• C)No because withholding delivery is never appropriate.
• D)No because filing a lawsuit is required before withholding delivery.
• E)No because withholding delivery is appropriate in the event of breach only if the contract is for at least 50 units of goods.

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Definitions:

Dividend Payout Ratio

A financial metric that shows the percentage of a company's earnings paid to shareholders as dividends, reflecting the company's dividend policy and financial health.

Maximum Rate of Growth

The highest possible expansion rate that a business can achieve without obtaining additional financing from external sources.

Sustainable Rate Of Growth

The maximum rate at which a company can grow its revenues without needing to obtain additional financing.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs of goods sold, representing the proportion of sales that turns into profit.