An Upstream Sale of Inventory Is a Sale

question 46

Multiple Choice

An upstream sale of inventory is a sale:

• A) Between subsidiaries owned by a common parent.
• B) With the transfer of goods scheduled by contract to occur on a specified future date.
• C) In which the goods are physically transported by boat from a subsidiary to its parent.
• D) Made by the investor to the investee.
• E) Made by the investee to the investor.

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Definitions:

Gambling Agreement

A contract or arrangement between parties to stake something of value, typically money, on the outcome of an event with an uncertain result, with the primary intent of winning additional money or material goods.

Exculpatory Clause

A clause in a contract that basically frees one party (usually the drafter of the agreement) from all liability arising out of performance of the contract; generally based on factors such as consumer ignorance or a great deal of unexplained fine print that serve to deprive the less powerful party of a meaningful choice.

Liability Release

a legal document where one party agrees not to hold another party liable for risk, damage, or loss.

Green Hair

A hair color that has been dyed various shades of green or hair that has turned green due to exposure to chlorine or certain chemicals.