Why Was the Purchaser Entitled to Rescind the Contract in Hammer

question 34

Multiple Choice

Why was the purchaser entitled to rescind the contract in Hammer & Barrow v Coca-Cola [1962] NZLR 723?

• A)The shortfall was insignificant.
• B)More than 80% of the goods were defective.
• C)The purchaser was not entitled to rescind the contract.
• D)Delivery by instalments had not been agreed to.

---

Definitions:

Assembly Line

A production process that breaks down the manufacture of a good into steps that are completed in a pre-defined sequence, often on a conveyor belt, to increase efficiency.

Opportunity Cost

The neglect of possible enhancements from other avenues when one direction is pursued.

Capacity Utilization Rate

The capacity utilization rate measures the proportion of potential economic output that is actually realized, often used in manufacturing to indicate the percentage of total productive capacity being utilized.

Unemployment Rate

The quota of workers currently out of work but looking for employment opportunities actively.