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:

Foreign Assets

Assets such as stocks, bonds, real estate, or businesses that are located in countries outside the investor's home country.

Foreign Price Level

A measure of the average prices of goods and services in a country relative to those in other countries, affecting exchange rates and purchasing power.

Real Exchange Rate

The rate at which a person can exchange the currency of one country for the currency of another and obtain the same quantity of goods.

Purchasing-power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to assess relative currency value and living standards.