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1. Gregory agreed to buy an unframed oil painting from Callaghan for $489. Later, Gregory asked whether Callaghan would frame the painting at no additional cost. Callaghan agreed. Would Gregory have to provide additional consideration to make Callaghan’s added promise enforceable? Explain.

2. Modern Electronics agreed to manufacture a 9-room direct TV system that included a digital video recorder for Briggs. The design was so unusual that it was unlikely that anyone else would buy it. The contract price for the system was to be $3,500. When the work was finished, Briggs refused to make payment, stating that any sale of goods at that price had to be in writing. Was her argument correct? Why or why not?

3. Ward ordered heavy machinery from a company in Moline, Illinois. The machinery was shipped to Ward, terms f.o.b. Moline. En route to its destination in Los Angeles, the machinery was destroyed when the freight train derailed and caught fire. Ward refused to honor the bill for the machinery. Would he be required to pay for it? Explain.

4. Digital Sales Co. sold Feldman, a consumer, a Blu-ray Disc player, promising that if she did not like the unit after one week she could return it and get her money back. If the unit suffered damage during that week, would the seller have to return Feldman’s money? Why or why not?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92224352

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