If the Contract Does Not State Otherwise, Standard Goods Under

question 56

Multiple Choice

If the contract does not state otherwise, standard goods under a contract for sale to meet the satisfaction of the buyer must:

• A) satisfy a reasonable person.
• B) meet the buyer's actual satisfaction, if honest and in good faith, even if unreasonable.
• C) meet the buyer's actual satisfaction, only if reasonable.
• D) meet a subjective standard.

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Definitions:

Variable Selling Cost

Costs that vary directly with the level of sales, such as commissions or shipping charges related to the sale of products.

Opportunity Costs

Opportunity costs represent the benefits a person, investor, or business misses out on when choosing one alternative over another.

Variable Cost

Costs that vary directly with the level of production or output, such as raw materials and direct labor expenses.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.