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Question
Fact Pattern 22-1Acme, Inc., buys scrap metal from Beta Resources, Inc., to process and sell. Their contract provides for an annual review of the price. When the processed scrap's market value decreases, the parties continue to ship and process the scrap while they review the price. During the negotiations, Acme does not pay Beta. Unable to agree on a price, Beta ends the deal, retrieves the scrap that was shipped and processed but not paid for, and sells it.
Refer to Fact Pattern 22-1. According to the court's ruling in Case 22.1, Utica Alloys, Inc. v. Alcoa, Inc., Beta is entitled to the proceeds from this sale and
a. nothing more.
b. the contract price without subtracting the market price for scrap.
c. the difference between the contract price and the market price for processed scrap.
d. the difference between the contract price and the market price for unprocessed scrap.
Answer
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