Campus Bus Service entered into a contract with Smith Bus Company to purchase 10 buses. One week before Campus Bus was scheduled to receive the buses, a fire destroyed Smith's warehouse and the buses inside. As a result, Campus Bus had to purchase its buses at a slightly higher cost from another manufacturer. Campus Bus sues Smith Bus for damages for breach of contract under these circumstances. Assume Campus Bus did not bear the risk of loss of the goods under the contract. In this scenario, ________.
A. Smith Bus should not be excused from performance because it did not act in good faith
B. Smith Bus can exercise its right of anticipatory repudiation
C. Smith Bus should be excused from performance under the clause for the rights on improper delivery
D. Smith Bus should be excused from performance under the test of commercial impracticability
Answer: D
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Shankar purchased a new car from Friendly Fred's Autos. Fred indorsed the check to Maya for value. Maya presented the check to the bank, and the bank cashed the check. Later, Shankar attempted to place a stop-payment order on the check, because the car he purchased from Fred was defective. Under these circumstances, ________.
A. the bank is liable to Shankar for paying the amount of the check to Maya B. Shankar would not be able to have his account recredited C. Shankar can prove that he has sustained a loss D. Maya must return the funds to the bank
The accounting rate-of-return method is widely used to measure the estimated performance of a capital investment, primarily because it uses time value of money concepts
Indicate whether the statement is true or false
A(n) ________ is a statute that relieves medical professionals from liability for ordinary negligence when they stop and render aid to victims in emergency situations.
A. proximate cause B. assumption of the risk C. res ipsa loquitur D. Good Samaritan law
Using the Direct Method For the following question(s), indicate how each transaction described would be classified on a statement of cash flows if the operating activities section is prepared under the direct method. When using the direct method, where is the sale of long-term investments for cash reported on the statement of cash flows?
A) Operating activity B) Investing activity C) Financing activity D) Noncash investing and financing activity