In January, a buyer and a seller agreed on the sale of 10,000 pounds of tomatoes to be delivered on July 1. The contract stated that the seller would set the price on June 15 and that the buyer would pay the price on delivery. On June 15, the market

price of tomatoes was approximately 75 cents per pound. The seller set the price at $1.50 per pound and the buyer demanded that the price be lowered.? ? When the parties could not agree, a lawsuit developed. The key issue was whether the seller had the right to set the $1.50 price. Decide.


Each party to a sales contract is required to act in good faith. For a merchant, the requirement of good faith includes observing reasonable commercial standards of fair dealing. In this case, when the market price was 75 cents, the seller was arguably not acting in good faith when it established a price of $1.50. Assuming the court concludes that the buyer was not acting in good faith in setting an unreasonably high price, the merchant will be deemed to have breached the contract.?

Business

You might also like to view...

A(n) ____________________ is made up of two or more people who interact with each other, share expectations and obligations, and develop a common identity.

Fill in the blank(s) with the appropriate word(s).

Business

Record keeping for a very small business can be accomplished by a journal and files for storing ________.

A. records of transactions B. details of seed capital C. details of start-up expenses D. details of marginal costs

Business

Title VII applies to all aspects of the employment relationship, including hiring, firing, and promotion

Indicate whether the statement is true or false

Business

Which of the following affects your chances of getting a raise or promotion?

A. a good performance appraisal B. an impressive resume C. a completed time log D. others' performance

Business