If a Question Arises Over a Trade Usage, the CISG

question 84

Multiple Choice

If a question arises over a trade usage, the CISG provides that:

• A) no reference to trade usage is allowed by a court.
• B) a court can look at those trade usages that the parties knew or ought to have known and are regularly used in the industry.
• C) a court can look at those trade usages to which the parties agree to be bound.
• D) both B and C.

---

Definitions:

Work in Process Inventory

The expenses associated with goods that are still in the manufacturing stage, encompassing wages, raw materials, and indirect costs.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials used in creating the good along with the direct labor costs used to produce the good.

Income Statement

A financial report that shows a company's revenues, expenses, and net income over a specific period, indicating its profitability.

Indirect Labor

Labor costs associated with the support work of producing a product or providing a service, not directly involved in the active manufacturing or service delivery process.