Inga Runs a Swedish Health Spa in Connecticut

question 8

Multiple Choice

Inga runs a Swedish health spa in Connecticut.She orders 100 loofah sponges from a company in California.They are sent "F.O.B.Hartford,Connecticut," but they never arrive at Inga's.What consequence?

• A) Inga has to pay anyway since it was a destination contract.
• B) The California company is required to bear the loss since the sponges had not yet reached the F.O.B.point.
• C) The California company and Inga will have to split the loss since they did not specify in their contract when the risk of loss would pass to Inga.
• D) It cannot be determined from the information given who has the risk of loss.

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Definitions:

Team Diversity

The inclusion of individuals with a variety of backgrounds, skills, perspectives, and experiences in a team, which can enhance creativity and problem-solving capabilities.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Interpersonal Relationships

Associations between two or more people that can vary in intensity and intimacy and can be found in various contexts.

Marginal-cost Pricing

The strategy of setting the price of a product equal to or slightly above the additional cost of producing one more unit of that product.