A Discount on the Purchase Price Given to Buyers as an Inducement

question 265

Multiple Choice

A discount on the purchase price given to buyers as an inducement for prompt payment is called a(n) _______________.

• A) Cash discount.
• B) Purchases discount.
• C) Original issue discount.
• D) Open market discount.
• E) Receivables discount.

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Definitions:

Properly Sealed

Ensuring that a container or package is securely closed and tamper-evident, often to maintain freshness or prevent contamination.

Innocent Misrepresentation

A false statement made honestly and without the intention to deceive, leading to a contract or agreement.

Contract Voidable

A contract that is valid but may be declared void at the option of one of the parties to the contract.

Non Est Factum

A legal defense claiming that a signed agreement is invalid because the signer was unaware of its true nature due to a significant mistake or misrepresentation.