A Seller Hears That One of Its Customers Has Filed

question 58

Multiple Choice

A seller hears that one of its customers has filed for bankruptcy.The seller demands in writing assurance of performance by the buyer.If the buyer does give written assurance that it will perform,which of the following is true?

• A) The written assurance will require that the seller deliver the goods.
• B) The seller may withhold delivery of the goods despite the assurance of performance.
• C) The seller may withhold delivery only if the insolvency will prevent payment of this debt.
• D) The seller must deliver the goods to the custody of the bankruptcy trustee.

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Definitions:

Government Spending

The total amount of money spent by the government on various sectors including public services, welfare, defense, and infrastructure.

Industry Regulation

The imposition of rules by a government, along with mechanisms for their enforcement, designed to modify behaviors within specific industries.

Reserve Requirement

A regulation set by central banks determining the minimum amount of reserves that must be held by a commercial bank.

Credit Availability

Credit availability refers to the ease with which individuals and businesses can obtain loans or credit from financial institutions, which can significantly affect economic activity by influencing spending and investment.