If You Buy a Toaster from a Second-Hand Dealer of Small

question 111

Multiple Choice

If you buy a toaster from a second-hand dealer of small appliances, which of the following is true?

• A) The Sale of Goods Act does not apply.
• B) Title to the toaster would pass at the time the buyer picked it up the next day.
• C) The Sale of Goods Act prohibits the seller from exempting himself from liability in the event that the toaster is not fit for purpose.
• D) There is an implied term of the contract that the seller has good title, i.e., the right to sell it.
• E) The risk of loss depends on who has possession of the toaster.

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Definitions:

Risk Management

The process of identifying, analyzing, and taking steps to reduce or manage uncertainties and risks to an organization's capital and earnings.

Put Option

An economic arrangement empowering the bearer with the right, albeit without the obligation, to sell a defined amount of a principal asset at a determined price within a set duration.

Call

An option contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a specified price within a specified time.

Put Option

An agreement that grants the holder the option, without the requirement, to sell a predetermined quantity of a fundamental asset at an agreed-upon price during a defined period.