QUESTION 22 Bill\'s Beer is brewed in Arkansas. The brewery was sold to another

Question

QUESTION 22

Bill's Beer is brewed in Arkansas. The brewery was sold to another company which stopped payment on a contract with Yakima Hops (Bill's hops supplier). Hops had just shipped a large quantity of hops to Bill's. In response to the new owner's action, Hops may:

must wait until Bill's rejects the goods before it can do anything

elect to cancel the contract, resell the goods, or withhold or stop deliveries

view the contract as breached, stop delivery of the goods if not yet received by the buyer, and sue for damages

view the contract as breached, stop delivery of the goods if not yet received by the buyer, and sue for damages orelect to cancel the contract, resell the goods, or withhold or stop deliveries

do nothing because its client no longer exists

QUESTION 23

Under some circumstances, courts do not require consideration for a promise to be enforced. The doctrine used by the courts to bind a promisor is called detrimental reliance or:

promissory estoppel

none of the other choices

all of the other choices

revocation

restitution

QUESTION 24

Which of the following is not true about corporate directors?

directors must always act to preserve the corporation

directors are subject to a fiduciary duty of loyalty

all of the other choices are true

directors may be removed from office for breach of duty

the initial board is often specified in the articles of incorporation

must wait until Bill's rejects the goods before it can do anything

elect to cancel the contract, resell the goods, or withhold or stop deliveries

view the contract as breached, stop delivery of the goods if not yet received by the buyer, and sue for damages

view the contract as breached, stop delivery of the goods if not yet received by the buyer, and sue for damages orelect to cancel the contract, resell the goods, or withhold or stop deliveries

do nothing because its client no longer exists

Explanation / Answer

1. D. View the contract as breached, stop delivery of the goods if not yet received by the buyer, sue for damages, or elect to cancel the contract and resell the good or stop the delivery.

This is due to the fact that they have the right to cancel the deal stating a breach of contract till the point the delivery has been received by the purchaser.

2. A. Promissory estoppel.

Under promissory estoppel a court binds a promisor to detrimental reliance.

3. C. All of the other choices are true.

All the following statements are true.

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