1. ABC makes toasters at its plant in Dallas. It agrees to sell 1,000 toasters to SamKig in Korea. for delivery to buyer on June 21, ,2015. There is a penalty provisions for delayed receipt of goods by buyer equal to $1,000 per day late. Also, there is a standard force majeure clause in the contract. A huge storm at sea delays all traffic in the area where the delivery ship is located for 5 days. The goods are transported to SamKig and arrive on June 28th. SamKig. ABC will owe SamKig _____ under these events based on these facts.

a. $7,000 for late delivery.

b. $ 5,000 for late delivery

c. $ 2,000 for late delay

d. Zero if the delivery term was DDP.

2.ABC Company (ABC) in Dallas sells heavy industrial equipment (e.g. cranes) to buyers. All equipment is made in Dallas. It contracts in writing with a private Peruvian citizen (Manuel) who lives in Lima to sell its products in Peru to local customers there. Manuel sells $100,000 worth of ABC Company equipment to local businesses and as a _____ will receive _______.

a. Employee...a salary from ABC.

b. Distributor...a commission of approximately $10,000.

c. Foreign sales agent...a salary.

d. Foreign sales agent ...a commission of approximately $10,000

3.ABC owns and manufactures appliances from its plant in Arlington. It decides to open an operation in Chile and selects William to be its local partner in Chile who invests $10,000,000 of his own money for total startup costs for the Chilean entity of $50,000,000. ABC's Chilean operation may be described correctly as a ________________.

a. Wholly-owned subsidiary of ABC.

b. Franchise.

c. Joint venture.

d. A and C.