If a Contract for the Sale of Goods Does Not

question 26

Multiple Choice

If a contract for the sale of goods does not state the price to be paid,the:

• A) contract is void because it is too indefinite to be enforced.
• B) buyer is required to pay a reasonable price for the goods.
• C) buyer can pay whatever price the buyer in good faith believes is a proper price.
• D) seller can rightfully charge whatever price the seller in good faith believes is a proper price.

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Definitions:

Available-for-Sale

A classification for investments in debt or equity securities not classified as held-to-maturity or trading securities, marked to market with changes in fair value recorded in other comprehensive income.

Dividend Revenue

Income earned from owning shares in a company, typically distributed from the company's earnings.

Trading Securities

Financial instruments such as stocks or bonds that are purchased by a company with the intention of selling them in the short term to realize quick profits.

Unrealized Loss

A loss that results from holding onto an asset that has decreased in price, but has not yet been sold or actualized through closure of the position.