When Does Risk of Loss Pass in a Sale of Goods

question 63

Multiple Choice

When does risk of loss pass in a sale of goods that does not involve a common carrier:

• A)Upon tender of delivery for both merchant sellers and nonmerchant sellers.
• B)Upon tender of delivery for merchant sellers and when goods are received by the buyer in the case of nonmerchant sellers.
• C)Upon tender of delivery for nonmerchant sellers and when goods are received by the buyer in the case of merchant sellers.
• D)When goods are received by the buyer for both merchant sellers and nonmerchant sellers.

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on when choosing one option over another.

Point B

A specific position or location on a graph or diagram, used often in economic models to denote a particular outcome or situation.

Point A

A specific position or location often referenced in economic models or graphs to illustrate a particular scenario or outcome.

Opportunity Cost

The budgetary repercussion of passing on the subsequent top pick when decisions are taken.