In a Shipping Contract,the Risk of Loss Passes to the Buyer

question 2

Multiple Choice

In a shipping contract,the risk of loss passes to the buyer when

• A) the contract is signed or finalized.
• B) the goods are delivered to the carrier.
• C) the goods are delivered to the buyer.
• D) the goods are en route and at least halfway to the buyer.

---

Definitions:

Von Neumann-Morgenstern

A theory of expected utility that describes how rational individuals choose among uncertain prospects, emphasizing the maximization of utility for decision-making under uncertainty.

Utility Function

A mathematical representation in economics that portrays an individual's preference ranking for different bundles of goods or outcomes.

Expected Utility

A theory in economics that calculates the utility expected from different choices to assess risk and make decisions.

Income

The financial gain that an individual or business receives, usually from employment, business activities, or investments.