If the Buyer Has Paid for the Goods in Advance

question 41

Multiple Choice

If the buyer has paid for the goods in advance but revokes his acceptance when the goods arrive, he:

• A) can resell the goods.
• B) must prove the nonconforming defect was known at the time of the original acceptance.
• C) return them within ten (10) days and wait for the refund.
• D) may retain possession of the goods as security until the refund has been paid.

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Definitions:

Expected Value

The weighted average of all possible values of a random variable, with weights being their respective probabilities.

Probability

A measure quantifying the likelihood of a specific event occurring, often expressed as a number between 0 and 1.

Von Neumann-Morgenstern Utility Function

A utility function that assumes individuals can rank their preferences under uncertainty, used in expected utility theory to describe choices.

Insurance

A financial product that provides protection against financial loss or harm, in exchange for the payment of a premium.