If a Buyer Repudiates a Contract for Identified, Conforming Goods

question 39

Multiple Choice

If a buyer repudiates a contract for identified, conforming goods before risk of loss has passed to him/her, _____.

• A) the buyer is liable for a commercially reasonable time for any loss or damage to the goods that is not covered by the seller's insurance
• B) the seller is liable for a commercially reasonable time for any loss or damage to the goods
• C) the buyer and the seller must share the loss equally
• D) the buyer is not liable for any loss or damage to the goods

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Definitions:

Owner's Equity

The residual interest in the assets of an enterprise after deducting its liabilities.

Assets

Resources owned or controlled by a company that are expected to provide economic benefits or value in the future.

Expenses

Costs incurred by a business in the process of earning revenue, such as salaries, rent, and utilities.

Assets

Resources owned or controlled by a company with expected future economic benefit.