If the Contract Doesn't Say Who Bears the Loss If

question 64

Multiple Choice

If the contract doesn't say who bears the loss if an item is lost or stolen, the Sale of Goods Act says risk goes with title. If the contract doesn't say when the title will pass, the Sale of Goods Act implies when it will pass. In which of the following will the statute imply that title will pass to the buyer at the time of the contract?

• A) George calls a store and asks them to deliver the table advertised in its catalogue. The store agrees, takes his credit card number, and promises to deliver it on Friday.
• B) Maureen contracts for Ms. Roberts' next year's pumpkin crop.
• C) Agro Ltd. buys all the chemicals contained in the container marked "A" but the price has to be ascertained by measuring the number of litres in the container.
• D) Azar goes into a store specializing in old woodworking tools. He chooses a $1000 tooling machine. The contract provides that it will be delivered to his workshop the next morning and he will pay for it in one month.
• E) While at Sears, Preston decides to buy the style of sofa he sees on display. He pays cash and the store arranges to have one like it, covered in the material he selects, delivered directly to him from the factory.

Understand the impact of changes in fixed and variable costs on a firm’s operating leverage.

Recognize the concept of forecasting risk and its implications for NPV estimates.

Identify the methods and importance of scenario, sensitivity, and simulation analysis in assessing project outcomes.

Explain the effects of capital rationing on project selection and the notion of soft and hard rationing.

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Definitions:

Product Concept

An early stage of the product development process where the focus is on understanding the product's features, benefits, and potential market.

Product Life Cycle

The stages a product goes through from development and introduction to the market, growth, maturity, and eventual decline.

Marketing Objective

Specific goals set by a business or organization aiming to promote its products or services effectively and achieve market success.

Introduction Stage

The phase in the product life cycle where a product is launched, marketed, and made available for the first time to potential customers.