Problem regarding the breach of contract

Assignment Help Financial Management
Reference no: EM13952432

Boboli Co. wanted to promote its"California-style"pizza, which it sold in supermarkets. The company contracted with Highland Group, Inc., to produce 2 million recipe brochures, which would be inserted in the carton when the freshly baked pizza was still very hot. Highland contracted with Comark Merchandising to print the brochures. But when Comark asked for details concerning the pizza, the carton, and so forth, Highland refused to supply the information. Comark printed the first lot of 72,000 brochures, which Highland delivered to Boboli. Unfortunately, the hot bread caused the ink to run, and customers opening the carton often found red or blue splotches on their pizzas. Highland refused to accept additional brochures, and Comark sued for breach of contract. Highland defended by claiming that Comark had breached its warranty of merchantability. Please comment.

Reference no: EM13952432

Questions Cloud

Combating juvenile delinquency : Use the Internet and Strayer databases to research your community's current efforts to deter or prevent juvenile delinquency through incarceration programs or other sanctions.
Advantages and disadvantages of being a union member : Why do employees join unions? What are the advantages and disadvantages of being a union member
Problem regarding the digital computer crime : Explain the four (4) major categories of computercrimes, and provide at least one (1) example for each.Explain the most common forms ofdigitalcrime.
Will redemption give dividend treatment : Corporation Z distributes in kind its long held Apple stock with an adjusted basis of $480 and a fair market value of $200 to shareholder C. Corporation Z also distributes Apple stock with an adjusted basis of $120 at a fair market value of $200 t..
Problem regarding the breach of contract : Unfortunately, the hot bread caused the ink to run, and customers opening the carton often found red or blue splotches on their pizzas. Highland refused to accept additional brochures, and Comark sued for breach of contract. Highland defended by c..
Scenario from the university of phoenix material : Define activities for a project based on the scenario you choose. You must include the following: Identify the scope of the project.
Claiming that a plaintiff may not recover for lost profits : Eventually, Lewis River sold its business at a large loss. A jury awarded Lewis River $1,026,800, largely for lost profits. Scott appealed, claiming that a plaintiff may not recover for lost profits. Comment.
Repackaging and the grave risk : Assume that Texaco knew about the repackaging and the grave risk but continued to sell in bulk because doing so was profitable. (If the plaintiffs cannot prove those facts, they will lose even if they do get to a jury.) Would that make you angry? ..
Assigned company''s financial statements : Calculate the financial ratios for the assigned company's financial statements, and then interpret those results against company historical data as well as industry benchmarks:

Reviews

Write a Review

 

Financial Management Questions & Answers

  What is the economic order quantity

Rock Bottom Carpets sells 5,600 carpets a year at an average price per carpet of $1,490. The carrying cost per unit is $22.37. The company orders 500 carpets at a time and has a fixed order cost of $69 per order. The carpets are sold out before they ..

  What is the value of one right

Frank Enterprises is sponsoring a rights offering wherein every shareholder will receive one right for every share of stock they own. The new shares in this offering are priced at $25 plus 5 rights. The current market price of Frank Enterprises stock..

  Each month into a savings account paying interest at rate

The Pirerras are planning to go to Europe 4 years from now and have agreed to set aside $170/month for their trip. If they deposit this money at the end of each month into a savings account paying interest at the rate of 5%/year compounded monthly, h..

  Cash flows for bond that has four year maturity

Draw a time line showing the cash flows for a bond that has a four year maturity, semiannual coupon payments, a coupon rate of 5 percent, and a par value of $1,000.

  Regarding revolving credit agreement

Which of the following is not true regarding a revolving credit agreement

  Show the capital expenditure budget for the company

Assume the following investment opportunities (Investments available) $600,000 cost, returns $170,000 per year for 6 years. Graph the WACC schedule and the IOS schedule, and show the capital expenditure budget for the company. Give the dollar amount ..

  Expenses for water treatment at a state park

Expenses for water treatment at a state park are expected to be $60,000 now, $25,000 in year one, and $10,000 per year thereafter forever. At an interest rate of 8% per year, the capitalized cost of the treatment is nearest to:

  What is the NPV if the pretax cost savings

Your firm is contemplating the purchase of a new $2,072,000 computer-based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $201,600 at the end of that time. What is the NPV if the pretax..

  European-style floating lookback call option on stock index

A new European-style floating lookback call option on a stock index has a maturity of 9 months. The current level of the index is 400, the risk-free rate is 6% per annum, the dividend yield on the index is 4% per annum, and the volatility of the inde..

  Smith earned during the time he held the t-bill

Smith buys a 182-day US T-Bill at a price which corresponds to a quoted annual rate of 182-day T-Bills of 10%. 91 days later smith sells the T-Bill at which time the prevailing quoted annual discount rate of 91-day T-Bills is also 10%. Find th..

  What can sales reach before they need to add fixed assets

XYZ Company has sales of $4,800,000, COGS is 40% of sales, operating expenses are $2,100,000, interest expense $20,000 and depreciation 30,000. Tax rate 40%. XYZ is now evaluating the purchase of a new machine for $210,000 installed with no NWC chang..

  What is this excess return called

Investors require a 4 percent return on risk-free investments. On a particular risky investment, investors require an excess return of 7 percent in addition to the risk-free rate of 4 percent. What is this excess return called? Required return Inflat..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd