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.
-Which of the following statements is correct about the situation?
A)Plains will need to pay the damages that Tristan experiences as a result of its failure to deliver- $500 X 10.
B)Plains does not owe any damages to Tristan because of impracticability.
C)Plains can use the defense of impossibility.
D)This contract is governed by common law principles of damages.

Question

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.​
-Which of the following statements is correct about the situation?​
A)​Plains will need to pay the damages that Tristan experiences as a result of its failure to deliver- $500 X 10.
B)​Plains does not owe any damages to Tristan because of impracticability.
C)Plains can use the defense of impossibility.
D)This contract is governed by common law principles of damages.

Quizplus · Accepted Answer

Plains does not owe any damages to Tristan because the flood constitutes an event of impracticability, which can excuse performance under the Uniform Commercial Code (UCC) that governs the sale of goods.

Tristan Colbert Owns an Appliance Store