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:

Optimal Consumption

The consumption point at which a consumer achieves the highest possible satisfaction from available resources.

Loaves

Units of bread or any baked product that are shaped and sized for slicing, often made from a dough or batter.

Pounds

A unit of weight commonly used in the United States and Britain, equivalent to 0.453592 kilograms.

Indifference Curves

Graphical representations in microeconomics to show combinations of two goods that provide the consumer with the same level of satisfaction.