If the Buyer Fails to Pay According to the Terms

question 58

Multiple Choice

If the buyer fails to pay according to the terms of the agreement,which of the following remedies is available to the seller without court action?

• A)sellers may cancel the contract and withhold delivery of goods;but sellers may not sell undelivered goods to another buyer or sue for damages.
• B)Sellers may cancel the contract,withhold delivery of goods,or sell the goods to another buyer.
• C)Sellers withhold delivery of goods or sell undelivered goods to another buyer but cannot cancel the contract.
• D)Sellers may cancel the contract as their only remedy.
• E)Sellers may cancel the contract;but sellers may not withhold delivery of goods or sell undelivered goods to another buyer.

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Definitions:

Budgeted Materials

Estimated quantities and costs of materials required for production within a specific time frame.

Raw Materials Inventory

This inventory consists of the basic materials and components that are used in the manufacturing process to produce finished goods.

Budgeted Production

Forecasted amount of products a company plans to produce over a specific period, based on its budget.

Raw Material A

The primary or basic materials that are used in the production of goods, not yet processed or manufactured.