Assume that Sherrie's Cherries contracts with Dessert World to sell and ship 600 pounds of cherries in three equal installments of 200 pounds each. If the first installment arrives with 5 pounds of spoilage, then Dessert World may
A. reject the installment shipment because of the perfect tender rule.
B. not reject the installment if those in the food industry expect a small percentage of spoilage with fresh fruits or vegetables.
C. reject the entire contract.
D. declare a breach and "cover."
Answer: B
You might also like to view...
The magnitude of operating leverage for Perkins Corporation is 4.5 when sales are $100,000. If sales increase to $110,000, profits would be expected to increase by what percent?
A. 14.5% B. 45% C. 4.5% D. 10%
An example of an item that should be evaluated by a retailer that uses inspection is _____
a. college textbooks b. antique furniture c. color televisions d. file cabinets
Johnson Manufacturing has the following selected information available for the year: Direct material purchased $ 40,000 Direct material used 45,000 Direct labor incurred 75,000 Manufacturing overhead incurred 50,000 Cost of goods manufactured 100,000 In addition, the cost of the finished goods inventory increased by $10,000 from the beginning to the end of the year. Cost of goods sold for the
year is: A) $ 80,000. B) $170,000. C) $ 90,000. D) $110,000.
All of the following are reasons why employers self-insure medical expense plans EXCEPT
A) to reduce certain costs, such as premium taxes and commissions. B) to provide mandated state benefits. C) to retain funds until needed to pay claims. D) to eliminate the need to comply with separate state laws.