McKay operated a large farm on which he grew a variety of vegetables for commercial canners....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
McKay operated a large farm on which he grew a variety of vegetables for commercial canners. He also grew a smaller quantity for sale to local retailers and wholesalers as fresh produce. On August 5th, Susan Daigle of Daigle Wholesale Foods Ltd. approached McKay and offered to purchase 5,000 5-kilogram bags of carrots from him at a fixed price per bag. McKay stated that the price was acceptable to him, but he was uncertain as to whether his crop would be sufficient to make up the 5,000 bags. He told Daigle he could definitely supply 4,000 bags, and that he would be in a position to tell Daigle Wholesale Foods Ltd. by the next week if the additional 1,000 bags would be available. Daigle nodded approval and left. A few days later, McKay discovered that crop failures in other parts of the province had pushed carrot prices substantially above the price offered by Daigle Wholesale Foods Ltd. McKay's crop, however, was abundant, and he discovered that he had 6,000 bags when the crop was harvested. At the end of the week, Susan Daigle called to determine if McKay could supply her with 5,000 bags, or only 4,000. McKay refused to supply Daigle Wholesale Foods Ltd. with any carrots, and informed her that it was his intention to sell the crop elsewhere. Discuss the negotiations between the parties, and determine the rights (if any) and liabilities (if any) of the parties. Assume that Daigle Wholesale Foods Ltd. brought an action against McKay. Discuss the nature of the action and render, with reasons, a decision. McKay operated a large farm on which he grew a variety of vegetables for commercial canners. He also grew a smaller quantity for sale to local retailers and wholesalers as fresh produce. On August 5th, Susan Daigle of Daigle Wholesale Foods Ltd. approached McKay and offered to purchase 5,000 5-kilogram bags of carrots from him at a fixed price per bag. McKay stated that the price was acceptable to him, but he was uncertain as to whether his crop would be sufficient to make up the 5,000 bags. He told Daigle he could definitely supply 4,000 bags, and that he would be in a position to tell Daigle Wholesale Foods Ltd. by the next week if the additional 1,000 bags would be available. Daigle nodded approval and left. A few days later, McKay discovered that crop failures in other parts of the province had pushed carrot prices substantially above the price offered by Daigle Wholesale Foods Ltd. McKay's crop, however, was abundant, and he discovered that he had 6,000 bags when the crop was harvested. At the end of the week, Susan Daigle called to determine if McKay could supply her with 5,000 bags, or only 4,000. McKay refused to supply Daigle Wholesale Foods Ltd. with any carrots, and informed her that it was his intention to sell the crop elsewhere. Discuss the negotiations between the parties, and determine the rights (if any) and liabilities (if any) of the parties. Assume that Daigle Wholesale Foods Ltd. brought an action against McKay. Discuss the nature of the action and render, with reasons, a decision.
Expert Answer:
Answer rating: 100% (QA)
Answer The negotiations between McKay and Susan Daigle of Daigle Wholesale Foods Ltd involved an offer to purchase 5000 5kilogram bags of carrots from ... View the full answer
Related Book For
Taxation For Decision Makers 2017
ISBN: 9781119330417
7th Edition
Authors: Shirley Dennis Escoffier, Karen Fortin
Posted Date:
Students also viewed these law questions
-
Required information [The following information applies to the questions displayed below.] Alison and Chuck Renny began operations of their furniture repair shop (Lazy Sofa Furniture, Incorporated)...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The trial balance of Terry manning Fashion Center contained the following accounts at November 30, the end of the companys fiscal year. Adjustment data: 1. Store supplies on hand totaled $2,500. 2....
-
If the used car market is a lemons market, how would you expect the repair record of used cars that are sold to compare with the repair record of those not sold?
-
What is search engine marketing and how is it related to the consumer decision process?
-
Beta measures: a. Idiosyncratic risk b. Stock-specific risk c. Systematic risk d. Total risk
-
Pronto Plumbing Company is a newly formed company specializing in plumbing services for home and business. The owner, Paul Pronto, had divided the company into two segments: Home Plumbing Services...
-
Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 28,000 parts is $100,000, which includes fixed costs of $40,000 and variable...
-
If Maria has a production budget of 4,590 units for month one, and 4974 units for month two, what is their total budgeted direct labor cost for month two if each unit requires .
-
If there is no seasonal effect on human births, we would expect equal numbers of children to be born in each season (winter, spring, summer, and fall). A student takes a census of her statistics...
-
Woodpecker Ltd. produces and sells body boards. It has experienced steady growth over the last 10 years. However, a recent increase in market competition has led Tupac the manager, to believe there...
-
A genetic experiment with peas resulted in one sample of offspring that consisted of 444 green peas and 168 yellow peas. a. Construct a 90% confidence interval to estimate of the percentage of yellow...
-
5. One insurance company, which is not listed on the stock market, purchases and takes over of a financial technology company that is highly anticipated in the future. The managers of the insurance...
-
How do I interpret a negative ROE % if the net income is positive, but stockholders equity is negative
-
10. Using the Generalized Dividend Valuation Model, if a stock's expected dividends for the next three years are $1, $2, and $3 respectively, and the required return is 5%, what is its current value?...
-
Anna, a high school counselor, devised a program that integrates classroom learning with vocational training to help adolescents at risk for school dropouts stay in school and transition to work...
-
Leeds Architectural Consultants began operations on January 2. The following activity was recorded in the company's Work in Process account for the first month of operations: Leeds Architectural...
-
Estimated cost and operating data for three companies for the upcoming year follow: Predetermined overhead rates are computed using the following bases in the three companies: Required: 1. Compute...
-
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the...
Study smarter with the SolutionInn App