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:

Free-rider Problem

A situation where individuals or entities benefit from resources, goods, or services without paying for them, which often leads to under-provision of those goods or services.

Private Firms

Businesses that are owned by individuals or groups of individuals and are not controlled or operated by the government.

Public Good

A public good is a commodity or service that is made available to all members of a society, typically by the government, and is characterized by non-excludability and non-rivalry in consumption.

Nontaxpayers

Individuals or entities that do not contribute to tax revenues, either because of low income, exemptions, or evasion.