If Not Expressly Agreed by the Parties in Their Contract

question 1

Multiple Choice

If not expressly agreed by the parties in their contract, the risk of loss of goods falls upon

• A) the purchaser because of the implied condition regarding transfer of title.
• B) the vendor, if the goods are in transit to the purchaser F.O.B. the vendor's warehouse.
• C) the purchaser, if the goods are in transit on a C.O.D. basis.
• D) the vendor, if the goods are in his possession because he must weigh or measure them for the purpose of ascertaining price.
• E) the vendor, if the goods are in his possession for any reason.

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Definitions:

FUTA

The Federal Unemployment Tax Act, which imposes a payroll tax on businesses to fund state workforce agencies.

Tax Form 940

A federal tax form in the United States used by employers to report annual Federal Unemployment Tax Act (FUTA) tax.

Purchase Order

A document issued by a buyer to a seller, detailing types, quantities, and agreed prices for products or services.

Bill

A statement of money owed for goods sold or services provided, typically specifying the total amount due and payment terms.