A Retailer Ordered Some Inventory by Phone from a Manufacturer

question 30

Multiple Choice

A retailer ordered some inventory by phone from a manufacturer.The order was for 1,000 machines from the manufacturer's inventory at $300 each.The manufacturer sent the retailer a fax moments later detailing the order.The retailer looked at the fax and was satisfied that it stated the terms of the contract,but never responded in any way.When the goods were delivered on time a month later,the retailer refused to accept them,asserting that the contract was unenforceable.Which is true?

• A) No writing is needed because of one of the exceptions to the Statute of Frauds.
• B) The contract is unenforceable because the retailer has not signed a writing.
• C) The contract is enforceable because it would be unconscionable to not enforce it.
• D) The contract is enforceable under the written confirmation rule.
• E) Because the fax was not responded to,this was an accommodation shipment.

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Definitions:

Capacity

The maximum amount that something can contain or produce.

Projected Cash Flows

This refers to the forecasted movement of money in and out of a business over a specific period, helping to estimate its financial health and operational viability.

Capacity

The maximum level of output that a company can sustain to produce in a given period under normal conditions.

Marketable Securities

Financial instruments that can be easily converted into cash, such as stocks or bonds.