Which of the Following Statements Applies to a Sale on Approval

question 12

Multiple Choice

Which of the following statements applies to a sale on approval under Article 2 of the UCC?

• A) both buyer and seller must be merchants.
• B) the buyer must be purchasing the goods for resale.
• C) risk of loss for the goods passes after the trial period is up.
• D) title to goods passes to the buyer on the delivery of the goods to the buyer for trial purposes.

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Definitions:

Illegal

refers to activities or actions that are prohibited by law and punishable if violated.

Competition Elimination

The process or strategy of removing or reducing competitors in a market to gain greater market share, either through business practices, mergers, or acquisitions.

Price Discrimination

A pricing strategy where a company charges different prices for the same product or service in different markets or segments, based not on costs but on customers' ability to pay or willingness to pay.

Cost Differences

Variations in the expense of production or procurement that occur between firms, industries, or geographic locations.