In discussions with the sales representative for Chicken Country Farms ("CCF"), Esther agreed to purchase 12,000 eggs provided they were freshly laid and would be delivered on the morning of April 1. The sales representative said the price would be approximately $5,000.00 but she would see if CCF would give a better price. Esther thought this was reasonable since the going retail rate for farm fresh eggs was $6.50 per dozen.

On March 2 Esther signed the following contract that was prepared by CCF.

"CCF agrees to sell and Esther Burney agrees to purchase up to 12,000 eggs at a price of $5.00 per unit to be delivered on April 1. CCF's maximum liability for failure to deliver shall be limited to $1.00/unit to a maximum of $500.00."

Esther had planned to hard boil and paint the eggs as soon as they were delivered and had entered into contracts to sell the 12,000 painted eggs to local retailers for $10.00/dozen. It was a required term of those agreements that the eggs be painted and delivered to the retailers on the morning of April 4 so they could be sold prior to Easter.

On April 1, CCF emailed Esther and advised that the delivery would be one day late because of mechanical difficulties with their delivery van but they were loaded and would be delivered by 9:00 a.m. The delivery from CCF arrived on April 2 at 9:00 a.m.

Esther expressed disappointment with the late delivery and said she was uncertain whether she would be able to meet her commitments to paint and deliver the eggs. The driver said it wasn't his issue and he could take the eggs back if she was refusing delivery. Feeling she had no choice, Esther told him to leave the eggs and signed the bill of lading that acknowledged receipt and contained a promise to pay the full purchase price within 7 days.

Esther did not take time to inspect the eggs upon delivery. Later that morning upon removing the eggs from the cartons (the eggs were packed in cartons of 100) she discovered that there were only 11,300 eggs in total and that 350 of the eggs were cracked and 500 were "medium" in size which she would not be able to sell to her retailers. In response to her inquiries, CCF advised that (i) the 11,300 eggs were all that their hens had laid, (ii) there was no size stipulation in the contract, (iii) Esther had every opportunity to inspect the eggs and had signed the bill of lading and (iv) the eggs were all perfect when they left the farm.

Esther then contacted a number of other farms and discovered that she could obtain eggs elsewhere 2 for immediate delivery at $3.00 per dozen. If they were delivered that evening (April 2) she could arrange for additional labour at a cost of $500.00 to meet her delivery deadline of April 4 for her retailers.

Esther calls you on April 2 at 2:00 p.m. with the following questions and requests an immediate analysis and response:

(i) Esther claims that she was under duress when the driver threatened to take back the eggs and wants to know if her agreement with CCF can be set aside on that basis.

(ii) Is there any other basis upon which Esther can discharge the contract, return the eggs and purchase 12,000 eggs from the other suppliers?

(iii) Since Esther did not inspect the eggs at the time of delivery does the principle of "Caveat Emptor" apply?

(iv) What remedies, if any, does Esther have against CCF? Does the principle of mitigation apply? If Esther is unable to meet the deadline for delivery to her retailers and is then sued by her retailers for their lost profits can this be included in her claim?

(v) Esther does not believe CCF's claim that the eggs were inspected and that none were cracked when they were loaded in the delivery van and the driver instructed to deliver them. Would it make a difference whether the eggs were cracked before or after they were loaded?

(vi) CCF has billed Esther for 1,200 units (10 eggs per unit) at $5.00/unit being a total of $6,000.00. Esther thought the agreed price was $5.00/dozen or $5,000.00. CCF claims that it sells its eggs on a wholesale basis which is always calculated on the basis of 10 eggs/unit. Esther thinks that there was either a misrepresentation or mistake and asks whether there is any legal remedy.

Required: Provide a legal analysis of the issues raised by Esther. Be certain to explain the applicable legal principles and how they apply to the facts as part of your analysis.

LONG-TERM ASSETS 121 REQUIRED Income statement questions: 1. Are total revenues higher or lower over the three-year period? 2. What is the percent change in total revenues from 2007 to 2009? 3. Is the percent of cost of goods sold to total revenues increasing or decreasing over the three- year period? As a result, is the gross margin percent increasing or decreasing" 4. Is the percent of total operating expenses to total revenues increasing or decreasing over the three-year period? As a result, is the operating income percent increasing or decreasing? 5. Is the percent of net income to total revenue increasing or decreasing over the three-year period? Balance sheet questions: 6. Are total assets higher or lower over the three-year period? 7. What is the percent change in total assets from 2007 to 2009? 8. What are the largest asset investments for the company over the three-year period? 9. Are the inventories increasing faster or slower than the percent change in total revenues? 10. Is the percent of total liabilities to total liabilities + owners' equity increasing or decreasing? As a result, is there more or less risk that the company could not pay its debts? Integrative income statement and balance sheet question: 1 1. Is the company operating more or less efficiently by using the least amount of asset investment to generate a given level of total revenues? Note that the "total asset turnover" ratio is computed and included in the "ratio analysis summary". Ratio analysis questions: 12. Is the current ratio better or worse in the most current year compared to prior years? 13. Is the quick ratio better or worse in the most current year compared to prior years? 14. Is the accounts receivable turnover ratio I (based on average receivables) better or worse in the most current year compared to prior years? 15. Is the 2009 accounts receivable turnover ratio 2 (based on year-end receivables) better or worse than the 2009 ratio based on an average? 16. Is the inventory turnover ratio I (based on average inventory) better or worse in the most current year compared to prior years? 17. Is the 2009 inventory turnover ratio 2 (based on year-end inventory) better or worse than the 2009 ratio based on an average? 18. Is the return on total assets (ROA) ratio better or worse in the most current year compared to prior years?Year 2010 Year 2011 Year 2012 Price Quantity Price Quantity Price Quantity Chips $4 100 $4 110 $5 80 Dips $5 50 $4 40 $3 50 Sodas $3 50 $5 60 $5 70 Question 1. GDP [10 Points in Total] a. (3 points) Compute nominal GDP in 2010, 2011, and 2012. [Show your computation work] b. (3 points) Compute real GDP in 2010, 2011, and 2012 (base year method). [Show your computation work] c. (2 points) Compute GDP deflator in 2010, 2011, and 2012. [Show your computation work] d. (2 points) Compute growth rates of nominal GDP and real GDP from 2010 to 2011 and from 2011 to 2012. [Show your computation work] Question 2. Inflation [7 Points in Total] a. (3 points) Compute cost of CPI basket in 2010, 2011, and 2012. [Show your computation work] b. (2 points) Compute CPI in 2010, 2011, and 2012. [Show your computation work] c. (2 point) Compute inflation rates (based on CPI) from 2010 to 2011 and from 2011 to 2012. [Show your computation work] Question 3. Business Cycle [3 Points in Total] a. (2 points) Based on your answers on Question 1 and 2 above, did Aggieland experience an expansion or a recession from 2010 to 2011? How about from 2011 to 2012? Was it at peak or trough or neither in year 2011? b. (1 point) From 2010 to 2011, did Aggieland experience an inflation or deflation? How about from 2011 to 2012?received it Clear my choice Question 9 Toyota, a Japanese firm, produces a $25,000 car in its plant located in South Carolina, U.S. How does is factor into GDP? Not yet Irawend Select one Points out of O a. $25,000 is added to Japan's GDP I Rag quilton O b. Nothing is added to either country's GOP O c. $25,000 is added to both U.S GDP and Japan's GDP O d. $25 000 is added to U.S. GDP Quantien 10 The supply and demand model shows us that Not you Select one: Points out of 1.00 O a if there is a surplus in a market, buyers will change their preferences and decrease their demand until the surplus is gone. F Rag question O b. once a market reaches equilibrium, the market price will stay the same, even if supply and demand change in the future. O c profit seeking firms will push the price so high that eventually nobody will buy the good and the market will dissolve O d. if there is a shortage in a market, competition will make the price rise and the shortage will be eliminatedQuestion 41 1 pts Assume that there are decreasing returns to capital, decreasing returns to labor, and constant returns to scale. Now suppose that both capital and labor decrease by 3%. Then o output will not change. output will decrease by more than 3%. o output will decrease by less than 3%. output will decrease by 3%. Question 42 1 pts In the growth model in chapter 11 without technological progress or population growth, suppose that Kt+1/N