Which of the Following Is True of a Destination Contract

question 10

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 has to pay for destroyed goods.
• D) The risk of loss passes once the shipping has been arranged.

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Definitions:

Level of Significance

The probability of rejecting the null hypothesis when it is actually true, used as a threshold for determining statistical significance.

Chi-Square Distribution

A statistical distribution that is used to describe the distribution of the sum of squared random variables, commonly used in hypothesis testing and constructing confidence intervals.

Degrees of Freedom

The number of independent values or quantities which can vary in the analysis without violating any restrictions.

Multinomial Experiment

A statistical experiment that leads to outcomes classified into more than two categories.