Zen Products, a lumber wholesaler, operates in a state where individual sales are prohibited for wholesalers. If one of the partners sells one sheet of plywood to an individual, the contract is likely to be:
A)Not binding on the firm.
B)Binding on the firm.
C)Enforceable on the selling partner.
D)Enforceable in a court of law.

Question

Quizplus · Accepted Answer

Since the sale violates state regulations that prohibit individual sales by wholesalers, the contract would not be binding on the firm. Wholesalers are typically restricted to selling to retailers or other businesses, not directly to consumers.

Zen Products, a Lumber Wholesaler, Operates in a State Where