Klint Microsystems, a microprocessor manufacturer, was contracted by Zeitar Studios to manufacture specially designed microchips to be used in an audio engineering process. Zeitar was to pay Klint $300,000 as per the contract
Klint decided to redesign their existing microchips and make them suitable for Zeitar. While the finished microchips were being shipped via a carrier, Klint was informed of Zeitar's insolvency. Klint cancelled the shipment before it was delivered. Klint then resold the chips to another studio where they had to settle for $150,000 as the chips were now only suitable for specific audio engineering processes.
What legal action can Klint take against Zeitar?
A) sue and recover lost profits
B) sue to recover purchase price
C) get a court order asking for specific performance
D) exercise the buyer's right to cover
A
You might also like to view...
Which of the following is an example of a pay-for-privacy (PFP) approach?
A. AT&T's GigaPower service B. Meeco.me's life management tool C. Digi.me's app D. The Hub of All Thing's open source project
According to the expense recognition principle, inventory costs are expensed as cost of goods sold when inventory is sold.
Answer the following statement true (T) or false (F)
Popularity created by consumer word of mouth is called ________.
A. spin B. propaganda C. hype D. tweet E. buzz
Under the FIFO method, for the beginning work-in-process units, the total associated manufacturing costs are the sum of the prior-period costs plus the costs incurred in the current period to finish the units
Indicate whether the statement is true or false