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:

No-Name Brand

Products that are sold without a brand name, often at a lower price compared to branded products.

Producer Surplus

The difference between the amount that producers are willing and able to sell a product for and the actual amount they do sell it for.

Consumers Surplus

The gap between the aggregate sum consumers are ready and capable of paying for a good or service versus what they actually shell out.

Elastic Demand

A market condition where the quantity demanded of a good or service significantly changes in response to a change in price.