Question

An electronics store located in Los Angeles, California, purchases electronics from an electronics corporation located in San Antonio, Texas. On January 19, the electronics store mailed to the corporation an order for $200,000 worth of electronics, specifying that delivery was to be no later than February 25, F.O.B. South Texas Railroad Depot, San Antonio, Texas. The corporation delivered the electronics to the railroad depot on February 15 and notified the electronics store by fax that its order was scheduled to arrive at the Southern Pacific Railroad Depot in Los Angeles on February 20. On February 17, the corporation learned that the electronics store was insolvent. The corporation demands immediate payment in cash for the electronics. Is this demand permissible

Answer 1

Answer: Yes because the electronics store is insolvent.

Step-by-step explanation:

Since the corporation learned that the electronics store was insolvent, and the corporation demands immediate payment in cash for the electronics, the demand is permissible because the electronics store is insolvent.

In this case, the electronic store is insolvent and therefore, unable to pay the debts that are owed and therefore, the demand is permissible in this case.