When a seller breaches a contract, the buyer may:
A. not recover consequential damages.
B. buy other goods and recover damages from the seller based on additional expense incurred in obtaining the goods.
C. legally sue the seller into performing if the seller repudiated the contract based on the buyer's insolvency.
D. obtain specific performance only if the goods are not unique and can be found elsewhere.
Answer: B
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Selling securities under an exemption for which the securities do not qualify results in liability.
Answer the following statement true (T) or false (F)
How many orders will be placed each year?
The injection molding department of Alver Inc. uses an average of 40 pounds of a special powder per day. The plant operates 250 days per year. The daily usage of the powder is normally distributed with a standard deviation of 5 pounds per day. The lead time to obtain the powder from a supplier is 9 days. The annual holding cost is $2 per unit and the cost of ordering the powder is $50.
XYZ Mutual Insurance Company has total assets of $10 million. The policyholders' surplus is $2 million. What are XYZ Mutual's total liabilities?
A) $4.0 million B) $8.0 million C) $10.0 million D) $12.0 million
Boise, a division of Price Enterprises, currently performs computer services for various departments of the firm. One of the services has created a number of operating problems, and management is exploring whether to outsource the service to a consultant. Traceable variable and fixed operating costs total $80,000 and $25,000, respectively, in addition to $18,000 of corporate administrative overhead allocated from Price. If Boise were to use the outside consultant, fixed operating costs would be reduced by 70%. The irrelevant costs in Boise's outsourcing decision total:
A. $25,000. B. $25,500. C. $18,000. D. $17,500. E. None of the answers is correct.