Honoria Agreed to Sell a Shipment of Widgets to Klaus

question 70

Multiple Choice

Honoria agreed to sell a shipment of widgets to Klaus on credit.Following the terms of the contract,Honoria delivered the widgets to an independent carrier and instructed the carrier to deliver the shipment to Klaus's warehouse.Which of the following statements is TRUE?

• A)Honoria still has the authority and the ability to exercise a lien in order to retain possession of the shipment until Klaus pays the full purchase price.
• B)Honoria can exercise the right of repossession against the independent carrier if she hears a rumor that the carrier may be insolvent.
• C)If Klaus becomes bankrupt,Honoria should rely entirely on an action for the price.
• D)If Honoria becomes insolvent while the goods are being shipped by the carrier,Klaus should exercise a lien over the widgets.
• E)If Klaus becomes insolvent while the carrier still has possession of the shipment,Honoria should exercise the right of stoppage in transit.

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Definitions:

Extrinsic Rewards

Benefits and incentives provided from an external source, used to motivate behavior that might not occur otherwise.

Intrinsic Rewards

Internal or psychological rewards that are derived from the activity itself rather than from external factors.

Extrinsic Reinforcers

Reinforcers that are not inherently related to the activity being reinforced.

Inherently Related

Describes things that are naturally or fundamentally connected or linked to each other.