Concept explainers
Case summary: A person GH owns and operates OGE, an audit entertainment establishment. The person GH signed a work order authorizing the company TCG to create a prototype of a customer chat system at a price of $64,697. Further, he signed an additional work order related to the installation of a customized firewall system with the same company at a price of $12,943. The payment of the money was to be done in monthly installments. Due to some problems, the work was not completed within the time anticipated. Also, the person GH was not able to make timely payments. The company TCG threatened the person GH to cease the work and filed a case regarding breach of contract. The person GH, instead of making further payments, wished to abandon the project.
To find: Whether the decision of the court regarding the transaction between the person GH and the company TCG was covered by UCC (Uniform Commercial Code), and the reason behind it.
![Check Mark](/static/check-mark.png)
Explanation of Solution
The Uniform Commercial Code (UCC) refers to a set of laws that governs all the commercial transactions related to goods across the United States. There are goods that require some related services such as design, installation, or assembly, but that does not mean that the buyer is purchasing the service rather than the good. The main focus is on the objective of the buyer. The service should be incidental to the purpose of the buyer to fall under the UCC. In the given case, the court would decide that the transaction between the person GH and the company TCG falls under the UCC. This is so because the service that the company TCG is providing to the person GH is incidental to the person GH’s objective of acquiring an operational website.
Want to see more full solutions like this?
Chapter 14 Solutions
The Legal Environment of Business: Text and Cases
- Expected Standard Stock Return Beta Deviation A B 12% 16 0.75 1.25 28% 37 The market index has a standard deviation of 22% and the risk-free rate is 9%. Required: a. What are the standard deviations of stocks A and B? b. Suppose that we were to construct a portfolio with proportions: Stock A Stock B T-bills 0.25 0.50 0.25 Compute the expected return, beta, nonsystematic standard deviation, and standard deviation of the portfolio. Complete this question by entering your answers in the tabs below. Required A Required B What are the standard deviations of stocks A and B? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Stock A 0.33 % Stock B 0.46 %arrow_forwardWhat are enforcement and Exemptions to Antitrust Law?arrow_forwardExercise 5-18 (Algo) Calculate receivables ratios (LO5-8) Below are amounts (in millions) from three companies' annual reports. WalCo TarMart Costbet Beginning Accounts Receivable $1,795 6,066 609 Ending Accounts Receivable $2,742 6,594 645 Net Sales $320,427 65,878 66,963 Required: 1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet 2. Which company appears most efficient in collecting cash from sales? Complete this question by entering your answers in the tabs below. Required 1 Required C Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet. (Enter your answers in millions rounded to 1 decimal place.) Receivables Turnover Ratio: WalCo S TarMart. S CostGet S Choose Numerator Choose Numerator "ValCo FarMart CostGet 320,427 $ 65.878 66,963 Choose Denominator Receivables turnover ratio 2,742.0 116.9 times 0 times 0 times Average Collection Period Choose Denominator Average…arrow_forward
- What are some types of corporate crimes? What are some types of white collar crimes? How does the the law deal with Corporate crimes and white collar cimes?arrow_forwardWhat is the Whistleblower Protection Act of 1989 (amended in 2011)? What are enforcement and Exemptions to Antitrust Law?arrow_forwardWhat is the Whistleblower Protection Act of 1989 (amended in 2011)?arrow_forward
- What are Corporate Crimes? What is the Sarbanes-Oxley Act of 2002? What is the Whistleblower Protection Act of 1989 (amended in 2011)?arrow_forwardWhat are Corporate Crimes? What is the Sarbanes-Oxley Act of 2002?arrow_forwardWhat are the differences between IFRS and GAAP? What are the smiliarities between IFRS and GAAP?arrow_forward
- BUSN 11 Introduction to Business Student EditionBusinessISBN:9781337407137Author:KellyPublisher:Cengage LearningEssentials of Business Communication (MindTap Cou...BusinessISBN:9781337386494Author:Mary Ellen Guffey, Dana LoewyPublisher:Cengage LearningAccounting Information Systems (14th Edition)BusinessISBN:9780134474021Author:Marshall B. Romney, Paul J. SteinbartPublisher:PEARSON
- International Business: Competing in the Global M...BusinessISBN:9781259929441Author:Charles W. L. Hill Dr, G. Tomas M. HultPublisher:McGraw-Hill Education
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337407137/9781337407137_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337386494/9781337386494_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9780134474021/9780134474021_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781947172548/9781947172548_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259929441/9781259929441_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9780357026595/9780357026595_smallCoverImage.gif)