Fresh Grow Farm enters into a contract with Gourmand’s Restaurant for a sale of a certain quantity of specified vegetables. After Fresh ships the produce but before Gourmand’s receives it, the buyer declares bankruptcy. Fresh can stop delivery of the goods in transit   a. only if the quantity is at least a truckload.   b. regardless of the quantity.   c. only if the quantity is at least 50 percent of the contract amount.   d. only if the quantity is in a single “unit.”

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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  1. Fresh Grow Farm enters into a contract with Gourmand’s Restaurant for a sale of a certain quantity of specified vegetables. After Fresh ships the produce but before Gourmand’s receives it, the buyer declares bankruptcy. Fresh can stop delivery of the goods in transit

      a.

    only if the quantity is at least a truckload.

      b.

    regardless of the quantity.

      c.

    only if the quantity is at least 50 percent of the contract amount.

      d.

    only if the quantity is in a single “unit.”

  2. If the seller is not a merchant, and the goods are being held by the seller for the buyer to pick up, the risk of loss passes to a buyer on identification.

    True

    False

  3. To protect a buyer from surprise, a warranty can be limited only by general, ambiguous language.

    True

    False

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