A Buyer in a Contract for the Sale of Goods

question 42

Multiple Choice

A buyer in a contract for the sale of goods:

• A)may not inspect the goods before payment or acceptance, unless the parties agree otherwise.
• B)must pay prior to inspection with a C.O.D.sale, which impairs the buyer's remedies.
• C)must bear the expenses of inspection, but may recover these costs from the seller if the goods are rightfully rejected.
• D)loses the right to reject nonconforming goods by not inspecting them immediately upon delivery.

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Definitions:

Break-even

The juncture where overall expenses match total income, indicating neither profit nor loss is present.

Unit Sales

The total quantity of an item or product sold.

Contribution Margin Ratio

A ratio that measures the proportion of each sales dollar remaining after variable costs have been deducted.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit of a product, indicating how much each unit sold contributes to covering fixed costs and generating profit.