A Discount Given to a Customer for Purchasing a Large

question 25

Multiple Choice

A discount given to a customer for purchasing a large volume of merchandise is typically referred to as a

• A) quantity discount.
• B) cash discount.
• C) trade discount.
• D) size discount.

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Definitions:

Jointly And Severally

A legal term indicating that parties in an obligation or liability are responsible both together as a group and individually.

Contract Obligations

Duties imposed by a contract that parties must perform; failure to do so can result in legal action.

Partnership By Estoppel

A legal principle that occurs when a person who is not technically a partner in a business behaves like a partner or allows others to believe they are a partner, and as a result, may be held liable as a partner.

Justifiably Relies

A principle where a party reasonably depends on the statements or actions of another, typically in a legal or contractual context.