Which of the Following Is True of the CISG's Risk

question 74

Multiple Choice

Which of the following is true of the CISG's risk allocation between parties of a contract?

• A) If a seller fails to take delivery, then the buyer has to assume the risk for any damage to the goods after that time.
• B) The CISG defines some trade terms, which can be used by the parties to allocate risk among themselves.
• C) It allows parties to use Incoterms for risk allocation.
• D) The CISG's risk allocation is affected by breach of contact.

---

Definitions:

Premium

The amount paid for an insurance policy or an additional cost for receiving better service or goods.

Adverse Selection

A situation in which one party in a transaction has more information than the other, often leading to an unfavorable selection process.

Screening

The process of evaluating or testing something or someone to determine if certain criteria or standards are met, often used for selection purposes.

Signaling

The process by which one party conveys some meaningful information about itself to another party, often seen in contexts like job markets and education.