One Price Tactic Requires the Purchaser to Absorb the Freight

question 69

Multiple Choice

One price tactic requires the purchaser to absorb the freight costs from the shipping point.In this case,the farther buyers are from sellers,the more they pay because transportation costs generally increase with the distance merchandise is shipped.What is being described?

• A) uniform delivered pricing
• B) FOB origin pricing
• C) zone pricing
• D) freight absorption pricing

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Definitions:

Treasury Bills

Short-term debt obligations issued by the government to finance its operations, with maturities ranging from a few days to one year.

Mutual Mistake

A legal concept where both parties involved in an agreement have a misunderstanding regarding a critical fact of the agreement.

Reasonable Person Test

In a negligence action, the judicial standard of socially acceptable behavior; the standard used to determine the existence of apparent authority of an agent.

Meeting of the Minds

An agreement between parties on the terms of a contract, demonstrating mutual consent and understanding.