What Should Be Included in the Standard Form Contract in Order

question 41

Multiple Choice

What should be included in the standard form contract in order for a lessor to maximize its ability to minimize its exposure for damage caused to a leased vehicle in the lessee's possession?

• A) a benefit of relationship clause to ensure reciprocal benefit to the lessor
• B) the bailee identified as the party to be paid in the event of loss for insurance
• C) an ordinary diligence exclusion clause to limit liability for ordinary neglect
• D) the bailor named as the party to be paid in the event of loss for insurance

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Definitions:

Percentage-of-Completion Method

An accounting method used to recognize revenues and expenses of long-term projects proportionately with the degree of completion.

IFRS

A collection of accounting standards known as International Financial Reporting Standards, developed by the International Accounting Standards Board, which directs the global preparation of financial statements.

Selling Goods

The act of transferring physical products or merchandise to a buyer in exchange for money or other compensation.

Cookie Jar Reserves

An accounting practice where companies store reserves in good years to smooth out earnings by releasing them in bad years, which can be seen as deceptive.