The Setting Sun Appears Red

question 10

Multiple Choice

The setting sun appears red. What can you conclude?

• A) The sun's surface temperature has cooled somewhat at the end of the day.
• B) Only the longest waves of visible light are striking your eye.
• C) The next day's weather will be stormy.
• D) You will not be able to see the moon that night.

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Definitions:

Risk Of Loss

A provision in contracts determining who bears the risk for damage to goods after purchase but before delivery.

Indemnification

A financial agreement in which one party agrees to cover the losses or damages incurred by another.

Entrustment

The transfer of goods to a merchant who ordinarily deals in that type of goods. If the merchant subsequently sells them to a good-faith third-party purchaser, the buyer acquires good title to the goods.

Merchant Authority

The legal ability of a retailer or agent to act on behalf of a business in a way that binds the business.