Barnes & Noble faxes to Woodchip Publishing Company on May 1, 2002 the following: ? Please ship immediately six copies of NOBODY FIXES REAL CARROT STICKS ANYMORE. ? Price: $6.00 Shipping: $2/book ? Woodchip ships six books with an invoice as

follows: ? Six NOBODY FIXES REAL CARROT STICKS ANYMORE @ $6.00 = $36.00 ? Shipping and Handling = $6.00 ? Suppose that the fax from Barnes & Noble read: ? Please ship immediately via priority mail - 10 Copies of NOBODY FIXES REAL CARROT STICKS ANYMORE. ? Price: $6.00 per book Shipping: $3.95 total ? Woodchip ships the books at the $6 price but ships them via two-day UPS at a price of $5.95. Is there a contract?

You have two merchants and Woodchip accepted by shipping, but used a different carrier that made a difference in price. It was an acceptance and breach at the same time because Barnes & Noble specified shipping and Woodchip used a different means for shipment. At a minimum, Barnes & Noble is permitted to not pay the extra shipping even if it chooses to accept the books. The acceptance on the different shipping terms is really not an acceptance, but a counteroffer that Barnes & Noble is free to accept or reject.

Business

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What is the average inventory if they order at their EOKrewe quantity?

The Krewe of Orpheus maintains a supply of swizzle sticks for events throughout the year. Demand for swizzle sticks is shockingly low, a quick check of krewe records from last year reveals that they used only 585,000, but the krewe president believes that they should be good stewards of what they have, so they seek to manage this inventory using the EOQ policy, although they prefer to refer to it as an EOKrewe policy for obvious reasons. Swizzle sticks are not expensive items, they cost a nickel apiece largely due to the club logo printed on each one. This also serves to increase the lead time as they can't be obtained from a standard restaurant supply house. Instead, they must be ordered with an eye towards the six day lead time. It costs $15 to place an order, most of this cost is a result of explaining the meaning of "Laissez les bons temps rouler" and why it should be printed on the edge of each swizzle stick. Holding cost is 20% of purchase price. A) 41892 B) 20946 C) 18374 D) 9187

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A firm has an issue of preferred stock that pays an annual dividend of $2.00 per share and currently is selling for $18.50 per share. Finally, the firm's marginal tax rate is 34%. This firm's cost of financing with new preferred stock is

A) 10%. B) 7.13%. C) 10.81%. D) 6.6%.

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