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PilotLPTM [1.2K]
3 years ago
13

You have ordered a black sweater from an Internet source but received a pink one instead. The website states that there are no r

eturns or exchanges accepted.
Is this a valid contract?
Business
1 answer:
kirza4 [7]3 years ago
6 0
<h2>The contract is invalid.</h2>

Explanation:

  1. An online though it has some cons like "cannot touch and feel, color may slightly vary from the original to the picture given, quality cannot be measured, etc".
  2. But the scenario given here is the expected / ordered color is different from the received one and it is wrong that the website is not accepting.
  3. This website is not user-friendly and the fault from the website side is not accepted which once again re-insist the unfriendliness.
  4. Any website should allow the user to do easy exchange and returns because of various reason said in point no.1.
  5. If the website continues with same invalid contract, then it will lose its name and lose the customer too.
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Answer: c. $20,000

Explanation:

The Loss on Realization is monies accrued after assets have been sold off at less than their original value and in Calculating it, the following formula is used,

Loss on realization = Total Capital Balances after payment of liabilities minus - balance

Slotting in the figures therefore we have,

Loss on realization = $40,000 + $70,000 - $80,000

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