Fact Pattern 21-A1 (Questions A9-A10 Apply)

question 26

Multiple Choice

Fact Pattern 21-A1 (Questions A9-A10 apply)
Internet Cafés,Inc.,contracts to buy all of its requirements for coffee,at a minimum of 1 million pounds per year,from Java Corporation for six years.After three years,Internet tells Java that it plans to sell its assets to Bagel Bistros,Inc.Bagel Bistros refuses to assure Java that it will continue Internet's contract.
-Refer to Fact Pattern 21-A1.Java can

• A)assign its rights under the contract but cannot terminate it.
• B)terminate the contract and seek damages.
• C)suspend performance under the contract until Java is fully paid.
• D)do nothing.

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Definitions:

Premium

An amount paid for an insurance policy, reflecting the cost of carrying the insurance coverage.

Tender Offer

involves a company or individual making a public offer to purchase some or all of shareholders' shares in a corporation at a specified price for a certain period.

Shareholders

Individuals, companies, or institutions that own one or more shares of stock in a public or private corporation, thus holding partial ownership.

Synergy

The concept that the combined value and performance of two companies will be greater than the sum of the separate individual parts.