If Some Part of a Shipment of Goods Does Not

question 32

Multiple Choice

If some part of a shipment of goods does not conform to the contract, the

• A) seller generally must be given an opportunity to cure the defect.
• B) buyer can immediately reject the entire shipment and automatically cancel.
• C) buyer cannot accept the part that is conforming.
• D) buyer must accept the shipment at a reduced price.

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Definitions:

Classical Theory

An economic theory advocating for free markets, minimal governmental intervention, and the belief that markets are self-regulating.

Loanable Funds Market

A theoretical market where borrowers and lenders interact, determining the market interest rate based on the supply and demand for loanable funds.

Say's Law

An economic theory suggesting that the production of goods creates its own demand, essentially asserting that "supply creates its own demand."

Real Balances Effect

The impact on consumer purchasing power resulting from a change in the price level, affecting real income and consumption.