Reba Orders a Pair of Custom-Made Cowboy Boots,C

question 24

Multiple Choice

Reba orders a pair of custom-made cowboy boots,C.O.D.from Home on the Range Western Wear.When the boots arrive,Reba pays the carrier for the boots,then opens the package,only to discover that the boots are the wrong snake skin color and three sizes too big.At this point:

• A) she is entitled to inspect the goods after payment (due to the C.O.D. terms) and she can reject the boots because they are nonconforming.
• B) Reba cannot revoke the acceptance, because the wrong color and size of the boots are not substantial impairments.
• C) Home on the Range can allege that Reba did not conduct a proper inspection; therefore, though Home on the Range must cure, Reba is obligated to pay for the return of the incorrect boots and the shipment of replacement boots.
• D) None of the above.

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Definitions:

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period to manage liquidity and ensure cash availability.

Incremental Approach

A decision-making process that focuses on analyzing the financial impact of small or incremental changes in operations or business activities.

Budgeting

The process of creating a plan to spend your money, outlining projected income and expenses.

Self-Imposed Budget

A budget that is created with the input and agreement of lower and middle management employees, improving commitment and enforcement.