Which of the Following Is True If an Owner Entrusts

question 107

Multiple Choice

Which of the following is true if an owner entrusts the possession of goods to a merchant who deals in goods of that kind?

• A)The merchant can transfer all rights in the goods to a buyer in the ordinary course of business.
• B)The merchant can only transfer voidable title until any funds in the possession of the merchant are transferred to the owner.
• C)The merchant can only transfer void title until the owner approves the sale.
• D)The merchant can only transfer temporary title until any funds in the possession of the merchant are transferred to the owner.
• E)The merchant must have any purchaser sign a document acknowledging that the purchaser will return the goods upon the request of the owner.

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Definitions:

Vertical Integration

The combination of two or more stages of production or distribution managed by a single company to increase control and reduce costs along the supply chain.

Horizontal Integration

A business growth strategy through acquiring or merging with competitors in the same industry at the same stage of production.

Horizontal Contracts

Agreements or cooperations between businesses that operate at the same level in the supply chain, often for mutual benefit or to reduce competition.

Customers' Goals

The objectives or desired outcomes that customers aim to achieve through purchasing goods or services.