Pepe Wants to Buy Something from Lorna

question 10

Multiple Choice

Pepe wants to buy something from Lorna. Pepe also wants to make sure that the contract is governed by the Sale of Goods Act. Which of the following statements is TRUE?

• A) because the Sale of Goods Act defines a sale of goods as a transfer of goods in exchange for "money consideration," the statute will apply only if Pepe pays with cash
• B) The statute may apply if the parties' contract deals with manufactured goods (like cars and computers), but not if it deals with natural products (like milk and timber).
• C) The statute will apply if the parties create either a sale or an agreement to sell.
• D) Even if the parties' transaction would not normally fall within the scope of the Sale of Goods Act, the statute will apply if the parties intend for it to do so.
• E) Although the parties' contract may be valid, it cannot possibly be governed by the Sale of Goods Act unless it is evidenced in writing.

---

Definitions:

Payroll Register

A document that records the payment details of a company's employees, including wages, deductions, and net pay.

Monthly Payroll

The total amount of money paid by a business to its employees in a month, encompassing wages, salaries, and other compensations.

Salaries Payable

A liability account that records the amount of salaries due but not yet paid to employees.

Ceilings For Earnings

Limits set on the amount of income that can be considered for certain calculations, such as social security or pension benefits.