Pepe Wants to Buy Something from Lorna

question 52

Multiple Choice

Pepe wants to buy something from Lorna.Pepe also wants to make sure that the contract is governed by the Sale of Goods Act.Which of the following statements is TRUE?

• A)Even if the parties' transaction would not normally fall within the scope of the Sale of Goods Act,the statute will apply if the parties intend for it to do so.
• B)Because the Sale of Goods Act defines a sale of goods as a transfer of goods in exchange for "money consideration," the statute will apply only if Pepe pays with cash
• C)The statute will apply if the parties create either a sale or an agreement to sell.
• D)Although the parties' contract may be valid,it cannot possibly be governed by the Sale of Goods Act unless it is evidenced in writing.
• E)The statute may apply if the parties' contract deals with manufactured goods (like cars and computers),but not if it deals with natural products (like milk and timber).

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Definitions:

Activity Cost Pools

A grouping of all costs associated with a specific activity, used in activity-based costing to more accurately allocate overhead costs.

Activity Rates

Rates used in Activity-Based Costing to assign overhead costs to products or services, based on specific activities that drive those costs.

Activity-Based Costing

An accounting method that assigns overhead and indirect costs to related products and services based on the activities that drive those costs.

Product I9

A reference to a specific product identified by the code I9, indicating a unique item or model in a company's product line.