Which of the Following Is True of Payment Procedures

question 24

Multiple Choice

Which of the following is true of payment procedures?

• A) A letter of credit can be exercised only with specified shipping documents.
• B) Providing credit to customers is a risk to the customers.
• C) Up-front cash payment is a risk to the customers.
• D) A documentary draft involves only two parties-the company and the customer.

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Definitions:

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices to different buyers, without a justification based on cost differences.

Noerr-Pennington Doctrine

a legal principle protecting the right to petition the government from liability in antitrust actions.

Clayton Act

A U.S. antitrust law, enacted in 1914, which aims to promote competition and prevent monopolies by prohibiting certain anti-competitive practices.

Foreign Sovereign Immunities Act (FSIA)

A United States law that sets the limitations as to whether a foreign sovereign nation (and its political subdivisions, agencies, and instrumentalities) can be sued in U.S. courts—judicial and legislative.