In the Event of a Breach by the Seller for Shipping

question 140

Multiple Choice

In the event of a breach by the seller for shipping improper goods, and assuming the buyer correctly rejected the delivery of the goods, the buyer's incidental damages may include:

• A) the reasonable costs of inspecting, transporting, and caring for goods while in buyer's possession
• B) the value of lost sales
• C) distress suffered by personnel due to having to work with nonconforming products
• D) all of the other specific choices
• E) none of the other choices

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Definitions:

Conversion

The act of changing something into a different form or entity, often used in marketing to refer to turning prospects into customers.

Cash-Basis Accounting

An accounting method where revenues and expenses are recorded when cash is received or paid, rather than when earned or incurred.

Accrual-Basis

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is received or paid.

Liquidity-Basis

A measurement or approach focusing on how quickly assets can be converted into cash without affecting their value.