Turtle World orders 200 small sea turtles from Reptile World. After the sea turtles had been identified to the contract but before the risk of loss had passed to Turtle World, the turtles were released into the ocean by a militant animal rights group who broke into Reptile World to set the animals free. Under this scenario
A. Turtle World cannot successfully sue because the contract is void.
B. Turtle World can cover, then win a judgment against Reptile World for the difference between the contract price and the cover price, plus incidental and consequential damages, minus expenses saved.
C. Turtle World can successfully sue for specific performance because sea turtles are everywhere.
D. Turtle World is entitled to a judgment for compensatory damages, but not consequential damages.
Answer: A
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When preparing the statement of cash flows using the indirect method, the payment of dividends would appear as
a. a decrease in the operating activities section b. an increase in the operating activities section c. a use of cash in the financing activities section d. a source of cash in the financing activities section
Which of the following would probably be a committed fixed cost for an accounting firm?
A) travel costs B) tax forms C) property taxes on building D) none of the answers are correct
The Salaries Payable account is a(n) ________
A) liability account with a normal debit balance B) asset account with a normal debit balance C) liability account with a normal credit balance D) asset account with a normal credit balance
What is their economic order quantity?
Kushie's Coffee in Bangalore is a quaint establishment nestled near MG Road in the central business district. It serves coffee and fruit cake to a clientele that has been enjoying these products for over fifty years. The demand for coffee beans is 6600 cases per year (each case has 24 ten-pound bags). It would be disastrous for them to run out of coffee, so they keep a safety stock of 30 cases. The cases cost $4800 and it costs $5 per case to order coffee. As coffee is a perishable product, the holding cost is fairly high at $40/case/year. The lead time to receive an order is seven days. Kushie's is open 300 days a year. A) 40.6 cases B) 162.5 cases C) 406 cases D) 1649.9 cases