When Goods Are Shipped COD

question 2

Multiple Choice

When goods are shipped COD:

• A) the buyer always has the right to examine them before making payment.
• B) the underlying contract must specify when the buyer may inspect the goods.
• C) the buyer has no right to examine the goods until payment is made.
• D) the buyer gives up all rights to inspection of the goods.

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Definitions:

Credit Risk

Credit risk refers to the possibility that a borrower will default on a loan by failing to make the necessary payments.

Seniority

The order of repayment in the event of a sale or bankruptcy, with higher seniority debts being repaid before those of lower seniority.

Mortgage Pass-through Agency

A financial entity that aggregates mortgage loans and creates pass-through securities representing interests in those loans.

Ginnie Mae

Ginnie Mae, or the Government National Mortgage Association, guarantees timely payment of principal and interest on mortgage-backed securities.