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Oxana [17]
1 year ago
10

Carpet Woes. Beau went shopping at ABC Carpet. He saw some carpet he liked but could not make up his mind. The manager at ABC Ca

rpet wrote down the proposed purchase price for him along with a statement that the price would be good for three months. Two months later Beau went back to ABC Carpet to purchase the carpet. Unfortunately, the price had gone up. Beau showed the manager his writing and guaranteed price, but the manager said that the offer was no longer good. Although he had to pay more than the ABC manager had initially promised, Beau proceeded to purchase his carpet from ABC Carpet, and he also contracted with ABC to do the installation. Unfortunately, Beau almost immediately started to have problems with the carpet. Beau told the sales manager of ABC Carpet that he was planning on bringing suit for breach of warranty. The sales manager, however, told him that the breach of warranty provisions only applied to sales of goods and that the carpet purchase was for installation, a service. Which of the following is true regarding the enforceability of the offer made by the manager at ABC Carpet?
a. Common law will be applied, not the UCC, because the contract was mixed.
b. The UCC will be applied, not common law because the contract was mixed.
c. The court will apply the predominant-purpose test to determine whether the predominant purpose of the contract was the sale of goods in which case the UCC would apply.
d. The court will apply the service-warranty test to determine whether the predominant purpose of the contract was the provision of a service in which case the UCC would apply.
Business
1 answer:
ella [17]1 year ago
4 0

Answer: The court will apply the predominant-purpose test to determine whether the predominant purpose of the contract was the sale of goods in which case the UCC would apply.

Explanation:

Based on the information given in the question, we should note that the court will apply the predominant-purpose test to determine whether the predominant purpose of the contract was the sale of goods in which case the UCC would apply.

We should note that under a predominant purpose test, it will apply when the transaction involved is Mena for goods sales and not for the service sales.

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A trader creates a long butterfly spread from options with strike prices $60, $65, and $70 by trading a total of 400 options. Th
malfutka [58]

Answer:

$400

Explanation:

From the question, there is a butterfly spread when a trader buys 100 options with strike prices $60 and $70 and sells 200 options with strike price $65.

The maximum gain is the point where both the stock price and the middle strike price are equal, i.e. equal to $65. At that point, the options payoffs are respectively $500, 0, and 0. By implication, the total payoff is $500.

The set up cost of the butterfly spread can be calculated as follows:

Setup cost = ($11×100) + ($18×100) – ($14×200)

                  = 1,100 + 1,800 – 2,800

Setup cost = $100

Net gain = Options payoffs – Setup cost = $500 - $100 = $400

Therefore, the maximum net gain (after the cost of the options is taken into account) is $400.

3 0
2 years ago
At the end of Year 1, Voss Company had $8,000 of inventory. During Year 2 the following events occurred: (1) Voss Company purcha
soldi70 [24.7K]

Answer:

$15,000

Explanation:

Year 2

Opening inventory = $8,000

Purchases = $10,000

Sales = $15,000 (cash received = $20,000)

Inventory count at year end = $1,000

Amount to be written to p/l = 8000 + 10000 - 1000

                                             = $17,000

However, the cost of goods sold is $15,000 while the remaining $2,000 is recognized as inventory write down.

6 0
2 years ago
Suppose a gold miner finds a gold nugget and sells the nugget to a mining company for $500. The mining company melts down the go
SSSSS [86.1K]

Answer:

The GDP will increase by $2,000 as a result of these transactions

Explanation:

When trying to calculate the increase in GDP caused by a series of transactions, we do not add all the transactions, instead we look at the price of the final good and that is the increase in GDP. In this case the final good is the necklace that the store department sells for $2,000 therefore we will only consider the final transaction. So the GDP will increase by $2,000 as a result of this series of transactions because the final good sold for $2,000.

4 0
2 years ago
Martha entered into a contract with Terry, an art dealer. According to the contract, Terry was to supply 18 th century artifacts
Arisa [49]

Answer:

Specifically perform the contract

Explanation:

When a contract is made and one of the parties does not perform his own part. During a dispute the court will first ask the erring party to perform their duties in the contract.

In this scenario Terry was to supply 18 th century artifacts to Martha for the play she was directing, and Martha was ready to pay $50,000 for this. Another director needed the same artifacts and was ready to pay $60,000. Terry decided not to sell the artifacts to Martha.

Terry has breached his contract with Martha, and will now be compelled to sell the painting to Martha at $50,000.

3 0
1 year ago
Santana Rey receives the March bank statement for Business Solutions on April 11, 2020. The March 31 bank statement shows an end
Tema [17]

Answer:

<u>Bank Reconciliation Statement </u>

Balance at bank as per Cash Book (Up to date) $67,438

Add Unpresented Cheques                                       $128

Less Lodgements not yet credited                                 0

Balance as per Bank Statement                          $67,566

Explanation:

<em>Step 1 Bring the Cash Book Bank Balance Up to Date as follows :</em>

Debit :

Balance as at March 31                       $68,057

Interest Earned                                           $33

Totals                                                   $68,090

Credit:

Bank Charge- Safety deposit box             $50

Cleared Check                                         $500

Bank Charges - Printed Checks              $102

Bank Balance (Updated)                     $67,438

Totals                                                   $68,090

<em>Step 2 Prepare a Bank Reconciliation Statement </em>

<u>Bank Reconciliation Statement </u>

Balance at bank as per Cash Book (Up to date) $67,438

Add Unpresented Cheques                                       $128

Less Lodgements not yet credited                                 0

Balance as per Bank Statement                          $67,566

4 0
2 years ago
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