Question

Dezine, a shirt manufacturing company, signs a contract with a button manufacturer to receive raw materials for the quarter. The button manufacturer breaches the contract by not supplying Dezine with the raw materials. This leads to a production halt in Dezine, and the company suffers an economic loss. In accordance with the scenario, which of the following is true?a. Dezine can sue and recover damages from the button manufacturer.b. Dezine can successfully sue the button manufacturer for a felony.c. Dezine can successfully sue the button manufacturer for larceny.d. Dezine cannot sue for damages against the button manufacturer, as no delivery was made

Answer 1

A

Step-by-step explanation:

Correct option is Dezine can sue and recover damages from button manufacturer. As both parties signed the contract, so both parties are liable to fulfill that contract. A contract is also a legal binding. So, in this case shirt manufacturing company can sue the button manufacturer for breaching the contract.

Felony refers to more serious crimes like murder, attempt to murder etc. So option B can't be correct.

Larceny is theft, so in this case there is no theft but breach of agreement.