Sometimes Conditional Sale Contracts Exist Between the Manufacturer and the Retailer

question 25

Multiple Choice

Sometimes conditional sale contracts exist between the manufacturer and the retailer. How does the consumer know she is getting clear title to the goods purchased?

• A) She doesn't know for sure, that's wherein lies the problem.
• B) In this case the Mercantile Agency Rule would be suspended.
• C) The federal Personal Property Security Act guarantees it to consumers.
• D) Because if she didn't, it would fly in the face of consumer expectations.
• E) By provincial statute-buyer acquires good title if the goods are resold in the ordinary course of business.

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Definitions:

Short-Run Supply Curve

A graphical representation showing the quantity of a good that producers are willing and able to supply at different prices in the short term, holding some factors constant.

Market Supply Curve

Represents the total quantity of a good that sellers are willing to sell across all price points in a given market.

Cotton Producer

An entity or individual engaged in the cultivation and production of cotton.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance.