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Nigel Is the Owner of a Small Drapery Manufacturing Business

Question 8

Multiple Choice

Nigel is the owner of a small drapery manufacturing business.He has several contracts with three fabric suppliers.Nigel believes the only obligations he owes to his suppliers are recited in the contracts.Which of the following circumstances would immediately let Nigel know his assumption was wrong?


A) a situation whereby a supplier's misconduct adversely affects his business interests
B) a situation enabling one party to eliminate application of the Sale of Goods Act
C) an entire contract clause forestalling suppliers' arguments relating to his guarantee
D) a price-variation clause that doesn't allow a supplier to offset increased costs

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