Which of the Following Is True of a Destination Contract

question 55

Multiple Choice

Which of the following is true of a destination contract containing a "no-arrival, no-sale" clause?

• A) The seller is required to bear the expense and risk during transportation.
• B) The seller is required to replace any goods lost in transit.
• C) The buyer does not have to pay for destroyed goods.
• D) The risk of loss passes once the shipping has been arranged.

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, where each has a negligible impact on market price.

Marginal Revenue

The additional income that will be generated by increasing product sales by one unit.

Quantity Demanded

The amount of a good or service that consumers are willing to purchase at a given price at a specific time.

Total Revenue

The total receipts from sales of goods or services provided by a company.