When Does the Risk of Loss Pass to a Bailee

question 55

Multiple Choice

When does the risk of loss pass to a bailee?

• A) When the buyer refuses delivery of the goods.
• B) When the seller delivers a document of title to the buyer, but before the buyer takes possession of the goods.
• C) When the contract is made between the buyer and seller, but before the buyer takes possession of the goods.
• D) If the bailee refuses to acknowledge the buyer's right to the possession of the goods.
• E) The risk of loss never passes to the bailee.

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Definitions:

GDP Price Index

A measure that tracks changes in prices of all goods and services produced within a country and is used to calculate real GDP.

Base Year

A specific year chosen as a reference point for financial or economic data comparison over time.

Inflation

The speed at which prices for goods and services generally ascend, wearing away the power to purchase.

Base Year

A specific year against which economic growth is measured, serving as a standard or benchmark.