When Raleigh Sold the Automated Sprinkler System to the Construction

question 102

Multiple Choice

When Raleigh sold the automated sprinkler system to the construction company, he specified in the contract that the system was to be shipped FOB destination. According to the UCC, this means:

• A)the buyer has title to the system as soon as it leaves the seller's loading dock.
• B)the seller guarantees that the system will work as advertised if it is installed correctly.
• C)the buyer has the right to refuse payment for the system if it arrives after the promised due date.
• D)the seller has title until the system is received at the construction site.
• E)the delivery company has title to the system until a representative of the construction company signs a receipt.

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Definitions:

Lump-Sum Tax

A tax of a fixed amount that does not vary with the taxpayer's income or activities.

Marginal Tax Rate

The tax rate that applies to the next dollar of taxable income, indicating how much of any additional income will be taken in taxes.

Sales Tax

A consumption tax imposed by the government on the sale of goods and services.

Structural

Relating to the underlying or foundational aspects or structures of a system, organization, or building.