Which of the Following Statements Are True in Relation to the Sale

question 10

Multiple Choice

Which of the following statements are true in relation to the Sale of Goods Acts (SOGA) ?

• A)Under the SOGA,money,real property and shares do not qualify as goods.
• B)The SOGA apply to any sale of goods contracts that satisfy the common law requirements for a valid contract.
• C)The SOGA mainly apply to business to business contracts for the sale of goods.
• D)All of the above.
• E)A and B only.

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Definitions:

Net Sales

The revenue a company makes after subtracting the costs for returns, compensation for damaged or missing items, and any permitted discounts.

Gross Profit

The disparity between income generated and the expenses incurred in producing a product or delivering a service, prior to subtracting costs for overheads, employee salaries, taxes, and interest expenses.

Sales Discounts

Reductions granted from the listed price of goods or services, often used as a marketing strategy to encourage early payment or increase sales volume.

2/10, N/30

A payment term indicating that a buyer can take a 2% discount on the invoice amount if payment is made within 10 days; otherwise, the net amount is due in 30 days.