Unless Otherwise Agreed to by the Parties, If the Buyer

question 30

Multiple Choice

Unless otherwise agreed to by the parties, if the buyer purchases goods on credit sale from the seller, the credit period starts from the time ________.

• A) the goods are shipped
• B) the buyer receives the goods
• C) the contract is signed by the buyer
• D) the buyer accepts the shipment

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Definitions:

Moral Hazard

A situation where one party is inclined to take risks because the negative consequences of the risk will be borne by another party.

Taxi Driver

An individual who operates a car licensed for providing taxicab transportation services to passengers in exchange for payment of a fare.

Piece-rate Garment Worker

A laborer who is paid based on the number of items produced, commonly used in the garment manufacturing industry.

Moral Hazard

The risk that one party to a transaction has not entered into the contract in good faith, or has an incentive to take unusual risks in a bid to earn a profit before the contract settles.