Which of the Following Is Correct with Regard to Risk

question 19

Multiple Choice

Which of the following is correct with regard to risk of loss, where the goods are in the possession of a bailee and are covered by a negotiable document of title?

• A) Risk of loss passes when the buyer receives the document.
• B) Risk of loss passes when the document is tendered to the buyer.
• C) Risk of loss passes when notification of the arrival of the goods is given to the buyer.
• D) If the buyer is a merchant, risk of loss passes to the buyer when the goods are delivered.

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Definitions:

Passion

A strong and barely controllable emotion or enthusiasm for something or about doing something.

Commitment

A pledge or promise to do something or to maintain a course of action, often seen in relationships and personal goals.

Face-to-Face Interaction

Direct communication between two or more individuals in the same physical space.

Exchange Theory

A social theory that suggests human relationships are formed by the use of a subjective cost-benefit analysis and the comparison of alternatives.