In Determining Whether a Contract Containing Both a Sale of Goods

question 46

Multiple Choice

In determining whether a contract containing both a sale of goods and a service is a UCC or general contract,the majority of states follow the:

• A) CISG.
• B) predominant purpose test.
• C) parol evidence test.
• D) procedural or bargaining scrutiny.

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Definitions:

LIFO Reserve

The difference between the cost of inventory calculated using the Last In, First Out method and the First In, First Out method.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle.

LIFO

Last In, First Out, an inventory valuation method that assumes the most recently acquired items are sold first, affecting accounting and tax calculations.

FIFO

"First In, First Out," an inventory valuation method where goods first acquired are the first to be sold.