When Article 2 Is Silent on an Issue of Sales

question 23

Multiple Choice

When Article 2 is silent on an issue of sales contract formation or interpretation and there is no state statutory law in place on that matter,_____.

• A) The common law rules apply
• B) The civil law rules apply
• C) Federal common law applies
• D) Federal statutory law applies
• E) The Uniform Sales Act applies

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Definitions:

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.

Retained Earnings

The part of the net earnings kept by the company instead of being paid out to its shareholders in the form of dividends.

Financial Statements

Documents that offer a summary of a company's financial status, encompassing the balance sheet, income statement, and cash flow statement.

Treasury Stock

Shares that were issued and subsequently reacquired by a company, held in its own treasury.