Selling a Futures Contract May Be Appropriate for One Who

question 107

Multiple Choice

Selling a futures contract may be appropriate for one who wishes to:

• A) lock in a future sales price.
• B) lock in a future purchase price.
• C) speculate that future spot prices are going down.
• D)have a ready market in which to sell a product.

Distinguish between the legal remedies and rights of parties in sales contracts when discrepancies in product delivery occur.

Analyze the application of the CISG (Contract for the International Sale of Goods) in international contracts.

Comprehend the difference between shipment and destination contracts and the obligations of the seller in both.

Develop critical thinking skills to evaluate contractual scenarios and propose solutions based on contractual obligations.

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Definitions:

Price Elasticity

A gauge of the degree to which demand for a merchandise reacts to alterations in its price, showing how susceptible the amount demanded is to changes in price.

Specific Tax

Tax of a certain amount of money per unit sold.

Consumers

Individuals or groups who are the final users of products and services generated within an economy.

Specific Tax

A fixed amount of tax imposed on a product, service, or transaction, regardless of its price.