Ryan Is Interested in Purchasing Two Dozen L

question 2

Multiple Choice

Ryan is interested in purchasing two dozen L.E.D. signs from Superior Sign Co. If the signs are damaged:

• A) and destroyed before Ryan's offer to buy them is accepted, Superior must create new signs to replace the ones Ryan wanted.
• B) after the contract of sale is formed and after the risk of loss passed to Ryan, then Ryan has no option but must pay the entire contract price of the signs.
• C) without fault of either party before the risk of loss passes to Ryan and the goods were identified when the contract was made, the contract is avoided whether the signs are totally or partially destroyed.
• D) and destroyed, Ryan has no recourse but to find another source of the signs.

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Definitions:

Continuous Review

A system of managing inventory where the stock levels are continuously monitored, with orders placed as soon as inventory drops to a predetermined level.

Safety Inventory

A quantity of stock kept on hand to prevent stockouts due to variability in supply or demand.

Product Availability

The extent to which a product can be purchased at any given time and location.

Coefficient of Variation

A statistical measure of the dispersion of data points in a data series around the mean, expressed as a ratio to the mean.