In the Event That a Buyer Receives a Shipment of Seriously

question 19

Multiple Choice

In the event that a buyer receives a shipment of seriously defective goods,under the CISG:

• A) The buyer may accept the goods and reduce the amount paid to the seller accordingly.
• B) The buyer must notify the seller of the defects within a reasonable time.
• C) The seller may cure the defect up until the time for performance has expired.
• D) The seller may request additional time to perform even though he will be late in so doing.
• E) All of the above.

---

Definitions:

Price Variances

Differences between the actual cost of a product or service and its expected cost, often analyzed in budgeting and cost management.

Quantity Variances

Differences between actual quantities of inputs used in production and the standard quantities expected to be used.

Standards

Established benchmarks or norms for measuring quality, performance, or compliance within an industry or organization.

Variable Factory Overhead Controllable Variance

The difference between the actually incurred variable overhead and what was expected, based on the standard cost.