Walrus Company Has the Following Information Available Concerning One of Its

question 51

Multiple Choice

Walrus Company has the following information available concerning one of its inventory items: $$\begin{array} { l r } \text { Cost of placing an or der } & \$ 30.00 \\\text { Unit carrying cost per year } & \$ 3.00 \\\text { Annual unit demand } & 6,625 \\\text { Safety stock } & 125 \\\text { Average daily demand } & 25 \\\text { Normal lead time in days } & 10\end{array}$$ If there is a delay in shipping the item, approximately how many days can be covered by the safety stock?

• A)5 days
• B)31 days
• C)26 days
• D)110 days

Grasp the concept and requirements of tender of delivery in sales contracts.

Identify violations of good faith in sales transactions.

Recognize conditions under which a buyer can inspect goods before payment and the exceptions.

Understand the basic obligations of a buyer under a sales contract according to the UCC.

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Definitions:

Intermediary

A person or organization that acts as a mediator or agent between parties, especially in a business or financial transaction.

Ownership

The legal right to possess, use, and dispose of something; often refers to the possession of assets.

Retailer

A business or entity that sells goods or commodities directly to consumers, usually in small quantities and from a fixed location, storefront, or online platform.

Ultimate Consumer

The final purchaser of a product or service who does not intend to resell it but uses it for personal use or consumption.