Which of the Following Statements Is True of Sales Contracts

question 16

Multiple Choice

Which of the following statements is true of sales contracts?

• A) If a sales contract does not state the price of goods that will be sold to the buyer, the contract is considered invalid.
• B) A sales contract is ordinarily an express contract, but some of its terms may be implied.
• C) When a contract includes the supply of both services and articles, the contract is always considered to be a contract for the sale of goods.
• D) If parties indicate that the price of goods must be fixed at a later date, and no price is thus fixed, the contract is still binding on them.

---

Definitions:

Efficient Market Hypothesis

The assertion that information travels around the U.S. financial system so fast that stock prices virtually always reflect all available information. The concept implies that technical analysis is useless.

Stock Prices

The cost of purchasing a share of a company at any given time, reflecting the market's valuation of the company.

Publicly Available Information

Information that is not restricted and can be accessed by the general public, often used in the context of financial markets.

Cumulative Feature

A characteristic of preferred stock that allows for the accumulation of unpaid dividends which must be paid out before any dividends are given to common stockholders.