When Purchased Goods Are Transferred to the Buyer from the Seller

question 42

Multiple Choice

When purchased goods are transferred to the buyer from the seller, at either the time of the sale or some time later by the seller's delivery, and the seller has an agent deliver the goods to the buyer, which of the following occurs?

• A) A voidable delivery contract
• B) An average delivery contract
• C) A simple delivery contract
• D) A complex delivery contract
• E) An acknowledged sale

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Definitions:

Collecting Bank

A bank that handles the presentation of payment documents, such as checks, for a depositor.

Endorser

A person who signs a negotiable instrument on the back to transfer ownership or to guarantee payment to someone else.

Secondarily Liable

Refers to the obligation to pay a debt or fulfill an obligation only if the primary party responsible fails to do so.

Drawer

The party that writes or creates a bill of exchange, such as a check, commanding a payment to be made to a specified person or entity.