Which of the Following Is Correct with Regard to Risk

question 4

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

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Definitions:

Health Risk

The probability of experiencing a harmful outcome to one's physical or mental well-being, often associated with lifestyle, environmental, or genetic factors.

Perception

The process by which people select, organize, and interpret information to form a meaningful picture of the world.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, which outlines a five-tier model of human needs, from basic physiological needs to self-actualization.

Postpurchase Cognitive Dissonance

The psychologically uncomfortable state produced by an inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance; buyers’ remorse.