Where a Contract for the Sale of Goods Does Not

question 28

Multiple Choice

Where a contract for the sale of goods does not mention the place of delivery for the goods,which of the following is true?

• A) The seller is obligated to deliver the goods to the buyer's place of business.
• B) The contract fails for failure to state a material term.
• C) The seller is obligated to deliver the goods at the seller's place of business.
• D) Sellers without a place of business are obligated to deliver the goods at the seller's home.
• E) Both C and D are true.

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Definitions:

Fixed Cost

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Economic Order Quantity

A calculation used to determine the optimal order quantity that minimizes the total inventory costs, including holding and ordering costs.

Inventory Policy

The set of guidelines a company follows to determine how much inventory should be kept on hand to meet customer demand and manage supply chain efficiency.

Quantity Discounts

Pricing incentives granted to purchasers that buy in large volumes, typically reducing the cost per unit.