Why Is the Determination of When Ownership Is Transferred Important

question 68

Multiple Choice

Why is the determination of when ownership is transferred important in the context of contracts for the sale of goods?

• A) because of the historic legal maxim 'risk follows title'
• B) because goods can be possessed without being owned
• C) because the right to sue ends when title passes to the buyer
• D) because the goods must be paid for when title passes to the buyer

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Definitions:

Decision-making Model

A structured approach to making choices among alternatives, often involving steps such as problem identification, alternative generation, and evaluation.

Special Order

A one-time customer order for a product or service, often requiring a unique set of specifications or considerations outside regular offerings.

Idle Capacity

Unused or underused production capability, which occurs when a business has more resources available than is required to maintain its current level of production.

Traced Costs

Direct costs, such as materials and labor, that can be directly linked to the production of specific products or services.