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Tristan Colbert Owns an Appliance Store

Question 140

Multiple Choice

Tristan Colbert owns an appliance store.He has ordered 10 Subzero refrigerators for his store at a cost of $2,500 each from Plains Manufacturing.Tristan ordered the refrigerators in anticipation of an order he was going to receive from a custom-home builder.Plains Manufacturing experienced a flood at its plant in Iowa City and lost all goods in production.They wereunable to deliver the refrigerators to Tristan and notified him immediately of the problem.Tristan has to purchase the 10 refrigerators from another plant at a cost of $3,000 each.​
-​Suppose that instead of a flood,Plains simply did not deliver the refrigerators.Which of the following is correct?


A) ​Plains will need to pay the damages that Tristan experienced as a result of its failure to deliver - $500 X 10.
B) ​Plains can use the defense of impracticability.
C) Plains is not in breach if there is advance notification that it cannot deliver.
D) This contract need not be in writing to be enforceable.

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