A Court Is Most Likely to Infer That Both Parties

question 55

Multiple Choice

A court is most likely to infer that both parties to a sale or lease of goods intended for a well-recognized trade custom to apply to their contract

• A)despite evidence to the contrary.
• B)when both parties had knowledge of the custom.
• C)in the absence of negligence on the part of the seller or lessor.
• D)if no implied warranty arises from the parties' course of dealing.

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Definitions:

Average Inventory

Average inventory is a calculation that estimates the value or quantity of inventory a company holds over a specific period, helpful for assessing inventory management efficiency.

Carrying Cost

Carrying cost refers to the total cost of holding inventory, which includes warehousing, handling, depreciation, opportunity costs, and insurance.

Carrying Costs

Costs that rise with increases in the level of investment in current assets.

Average Inventory

The mean value of inventory over a certain time period, used for inventory management and planning.