Court Decisions Which Are Not Binding on Another Court Are

question 3

Multiple Choice

Court decisions which are not binding on another court are known as:

• A)persuasive precedents.
• B)ratio precedents.
• C)stare decisis precedents.
• D)obiter precedents.

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Definitions:

Collection Delay

The time lag between when a payment is made by a customer and when the funds are available to the recipient.

Lockbox System

A service offered by banks to companies for the receipt of payment from customers, involving the collection of payments directly at a postal box and swiftly depositing them into the company's bank account.

Treasury Bills

Government-issued securities with maturity of up to a year, offered below their nominal value.

Collection Time

The duration it takes for a business to receive payments owed by its customers after a sale has been made.