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In Which of the Following Cases Will a Court Order

question 26

Multiple Choice

In which of the following cases will a court order specific performance of the contract?
i.Gigantic Electrical Warehouse repudiates its contract with Video Co.to purchase 2,000 VCRs.The loss of this deal might push Video into bankruptcy.
ii.Joan,a great opera singer,decides it is too far from New York to the National Arts Centre in Ottawa and so she will not perform at the sold-out concert there next week for which she had contracted months ago.
iii.Mitsuko had a contract with Refined Galleries to purchase a small Rembrandt drawing,which Refined wants now to sell to a regular and very wealthy customer of theirs.They will not give Mitsuko the drawing.
iv.John is refusing to perform a contract to sell his house to Eli.Eli has wanted to live in that house since he was a small boy.
v.Eli is refusing to perform a contract to purchase John's house.John has another purchaser but her highest offer is $10,000 less than Eli's.

Perform differential analysis for decision-making in various business scenarios.

Understand the principles of special orders and their impact on pricing and profitability.

Comprehend the cost-plus approach to product pricing, including the calculation of markup percentages.

Analyze the implications of accepting individual customization orders on profitability.

Definitions:

Control Over Inventory

Refers to the processes and measures a business undertakes to manage its inventory efficiently, ensuring adequate stock levels, and minimizing costs.

Safeguarding Inventory

Measures and practices employed to prevent inventory loss, damage, or theft, including physical security and inventory management systems.

Financial Statements

Reports that summarize the financial performance and condition of a company, including the balance sheet, income statement, and cash flow statement.

Average cost

The total cost of goods divided by the number of goods, used in inventory valuation and determining profit margins.