Hi guys, it's a been a crazy couple of days hitting Ninja notes and MCQ's. Scheduled my exam for April 16th (very fitting). Now I am questioning every thing I am reading instead of just memorizing the answers to the questions like I did last time.
Here is one that I am confused about:
On May 2, Handy hardware sent Ram Industries a signed purchase order that stated, in part, as follows:
“Ship for May 8 delivery 300 Model A-X socket sets at current dealer price. Terms 2/10/net30.”
Ram received Handy’s purchase order on May 4. On May 5, Ram discovered that it had only 200 Model A-X socket sets and 100 Model W-Z socket sets in stock. Ram shipped the Model A-X and Model W-Z sets to Handy without any explanation concerning the shipment. The socket sets were received by Handy on May 8.
Which of the following statements concerning the shipment is correct?
A.
Ram’s shipment is an acceptance of Handy’s offer.
B.
Ram’s shipment is a counteroffer.
C.
Handy’s order must be accepted by Ram in writing before Ram ships the socket sets.
D.
Handy’s order can only be accepted by Ram shipping conforming goods.
Why isn't him shipping a different product a counteroffer? How is it an acceptance? (A is correct)
Thanks Ninjas!
CPA Excel/Wiley/Ninja Notes/MCQs
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