Which of the Following Occurs When a Contract for the Sale

question 111

Multiple Choice

Which of the following occurs when a contract for the sale of goods includes a "CIF" shipping term?

• A)Risk of loss passes from the seller to the buyer when the goods are identified to the contract.
• B)Risk of loss passes from the seller to the buyer when the goods are delivered to the buyer.
• C)Risk of loss remains with the seller for 2 days (forty-eight hours)after the sale.
• D)Risk of loss remains with the seller for 3 days (seventy-two hours)after the sale.
• E)The seller puts the goods in possession of a carrier before the risk passes to the buyer.

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Definitions:

Implied Authority

This refers to the power of an agent to perform acts which are reasonably necessary to accomplish the purpose of an organization’s agency agreement, even if not explicitly granted.

Duty of Accounting

The obligation of a party (usually a fiduciary) to keep accurate records and report financial activity to relevant stakeholders or authorities.

Agent Owe

The duty or obligation an agent has to act in the best interest of the principal, including loyalty, care, and full disclosure.

Principal

In finance, the principal is the initial amount of a loan or the amount of an investment excluding any interest or profit earned.