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Costco,Inc

Question 116

Multiple Choice
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:

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

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