3. Bart Buyer, the owner of Bart’s Bargain Basement, sends a purchase order to Salena Seller for 1,000 My Little Autopsy toy sets—the season’s hottest selling toy that, to the dismay of parents everywhere, allows children to simulate the thrills and chills of performing a real autopsy on an anatomically correct doll whose body parts can be removed with realistic blood and gore effects. Salena, who does not have the popular toy in stock, ships 1,000 My Undead Mummy dolls to Bart with a note that states: “These are shipped as an ac-commodation to your order at a 10% reduction off our regular wholesale price.” When the dolls arrive, Bart rejects them (they are not gory enough, in his view, to suit the tastes of discriminating five-year-olds) and sues Salena for breach of contract. What result? 4. Benigno Buyer writes Francene Farmer a letter that states he is willing to purchase 1,000 pounds of apples at a price of $.50 per pound. A. How can Francene accept this contract? B. If Francene writes back stating, “Your terms are agreeable, provided you purchase a minimum of 1,200 pounds of apples.” What is the effect of Francene’s statement? Will it matter whether or not Benigno is also a merchant? C. Assume that the wholesale price of apples is $1 per pound at the time that the offer is made. If Francene accepts it, will she be likely to successfully assert a defense of unconscionably if she later refuses to honor the contract’s terms?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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3. Bart Buyer, the owner of Bart’s Bargain Basement, sends a purchase order to Salena Seller for 1,000 My Little Autopsy toy sets—the season’s hottest selling toy that, to the dismay of parents everywhere, allows children to simulate the thrills and chills of performing a real autopsy on an anatomically correct doll whose body parts can be removed with realistic blood and gore effects. Salena, who does not have the popular toy in stock, ships 1,000 My Undead Mummy dolls to Bart with a note that states: “These are shipped as an ac-commodation to your order at a 10% reduction off our regular wholesale price.” When the dolls arrive, Bart rejects them (they are not gory enough, in his view, to suit the tastes of discriminating five-year-olds) and sues Salena for breach of contract. What result?

4. Benigno Buyer writes Francene Farmer a letter that states he is willing to purchase 1,000 pounds of apples at a price of $.50 per pound. A. How can Francene accept this contract? B. If Francene writes back stating, “Your terms are agreeable, provided you purchase a minimum of 1,200 pounds of apples.” What is the effect of Francene’s statement? Will it matter whether or not Benigno is also a merchant? C. Assume that the wholesale price of apples is $1 per pound at the time that the offer is made. If Francene accepts it, will she be likely to successfully assert a defense of unconscionably if she later refuses to honor the contract’s terms?

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