Costco, Inc. had a contract to purchase 300,000 electric mini-Mercedes from HUMBENZ Toy Co. The toy cars were to be delivered by November 1. On October 23, the Consumer Product Safety Commission announced a recall of the toy cars as well as a ban on their sales because of electrical shorts and a high risk of fire in the cars. HUMBENZ has not delivered the cars to Costco. HUMBENZ:
A) has breached its contract with Costco.
B) has a void contract with Costco because the subject matter is now illegal.
C) must still deliver the cars because its contract predated the recall and ban.
D) None of the above
Correct Answer:
Verified
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