Which of the Following Statements Is Not True Regarding the Buyer's

question 12

Multiple Choice

Which of the following statements is not true regarding the buyer's right to cover?

• A) The buyer must cover.
• B) The measure of damages in a cover is cover price less contract price.
• C) Cover must be done in a commercially reasonable manner and without undue delay.
• D) Consequential damages can be recovered in addition to the cover damages.
• E) The seller may not cover.

---

Definitions:

Agency Approach

A mechanism used in financial management where one party (the agent) is allowed to act on behalf of another (the principal) in financial transactions or decisions.

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and entitling the holder to a share of the company’s success through dividends and/or capital appreciation.

Unamortized Premium

The portion of a bond premium that has not yet been amortized or gradually written off against earnings over the bond's life.

Wholly Owned Subsidiary

A company whose entire share capital is owned by another company, making it fully controlled by the parent company.