Trendy Imports Entered into a Contract on June 1 with Neat

question 61

Multiple Choice

Trendy Imports entered into a contract on June 1 with Neat Things,a small upscale gift shop,to supply it with 100 tooled-leather boxes.Delivery was to be made on September 15 so that the boxes could be on display in the store by October 15,ready for the pre-Christmas rush.On August 6,Trendy notified Neat Things that it seemed that a dock strike in Italy was holding up the shipment and,if the boat on which they were loaded could not leave port within a few days,Trendy would not be able to make the delivery on September 15.
-Based on the above scenario,which is most true?

• A)Neat Things can sue Trendy immediately for breach of contract.
• B)Neat Things can wait until September 15 and then sue Trendy for breach of contract.
• C)Neat Things must wait until September 15 to sue Trendy for breach of contract.
• D)a and b.
• E)None of these.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, including expenses like rent and salaries.

Variable Costs

Costs that vary directly with the level of production or output, such as raw materials and labor expenses.

Exponentiation

A mathematical operation involving two numbers, the base and the exponent, indicating how many times the base is multiplied by itself.

Principle Amount

The original sum of money borrowed in a loan or put into an investment.