Ready Fashions Inc

question 64

Multiple Choice

Ready Fashions Inc.is a garment manufacturing company.It recently entered into a highly profitable agreement to supply garments to a large clothing retailer.The company is also negotiating an agreement with a department store,but a favourable outcome seems difficult.However,Ready Fashions is not entirely dependent on the agreement with the department store because of the profitable deal with the clothing retailer.Therefore,the agreement with the clothing retailer is the company's _____.

• A)Best alternative to a negotiated agreement
• B)Zone of possible agreements
• C)Reservation point
• D)Aspiration point

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Definitions:

Risk of Loss

A legal term denoting the liability for damage to goods in a sales contract, determining who bears the risk if the goods are damaged or lost.

Merchant

A person who deals in goods of the kind sold in the ordinary course of business or who otherwise claims to have knowledge or skills peculiar to those goods.

Allegation of Fraud

An assertion that someone has engaged in deceitful practices in violation of the law, typically involving financial transactions.

Voidable Title

Title that may be voided if one of the parties elects to do so.