Scenario 19

question 120

Multiple Choice

Scenario 19.2 Use the following to answer the questions.
The BASF Chemical Company in Germany has developed a new rubberized coating. The product has an application for cell phones and other hand-held electronic devices that gives them protection from falls and scratches. BASF plans to market the product directly to businesses that manufacture the casings for these types of products. BASF currently uses a system of salespeople headquartered in Germany, while its primary business customers are in China.
Refer to Scenario 19.2. If BASF were to price its product in barrels from the factory, before it is loaded on the carrier, this would be an example of ____ pricing.

• A) buy-back allowance
• B) geographic
• C) F.O.B destination
• D) F.O.b. factory
• E) base-point

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Definitions:

Substantial Stake

A significant interest or investment in a particular issue or outcome.

Advisory Opinions

Non-binding interpretations offered by courts regarding legal questions, often without the presence of an actual case or controversy.

Prior Interpretation

Definition pertains to the understanding or explanation of a legal document, statute, or principle that precedes the current analysis or consideration.

Plain Meaning

A principle of legal interpretation that dictates if the words of a statute are clear and unambiguous, they should be applied according to their ordinary meaning.