Savannah and Tim Enter into a Sales Contract for Orchids

question 19

Multiple Choice

Savannah and Tim enter into a sales contract for orchids.With respect to the specific contractual provisions set out in the UCC,Savannah and Tim may

• A)agree to different terms only to a reasonable extent.
• B)agree to different terms unless they "get caught."
• C)agree to whatever terms they wish.
• D)not agree to different terms.

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Definitions:

Sales Returns and Allowances

Transactions in which customers return damaged or unsatisfactory products for refunds or credit, and adjustments made to sales revenue for these returns or granted concessions.

Accounts Receivable

Outstanding payments from customers to a firm for delivered or utilized goods or services awaiting settlement.

Merchandise Return

The process whereby customers return previously purchased merchandise to the seller for a refund, store credit, or exchange.

Selling Expenses

Costs incurred directly and indirectly in selling a product, such as commissions, advertising, and promotional materials.