How Does a "No-Arrival,no-Sale" Contract Differ from an F

question 6

Multiple Choice

How does a "no-arrival,no-sale" contract differ from an F.O.B.destination contract?

• A) If the goods fail to reach their destination,the seller must replace them in an F.O.B. destination contract,but not in a no-arrival,no-sale contract.
• B) Risk of loss while the goods are in transit is on the seller in an F.O.B. destination contract,but on the buyer in a no-arrival,no-sale contract.
• C) Implied warranties exist in the F.O.B. destination contract,but not in the no-arrival,no-sale contract.
• D) Identification will occur in an F.O.B. destination contract,but not in a no-arrival,no-sale contract.

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Definitions:

Opportunity Cost

The sacrifice of potential advantages from different alternatives when opting for a particular one.

Production Cost

The total cost incurred by a firm in producing a specific quantity of a good or service, including both fixed and variable costs.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than its trade partners, leading to potential gains from trade.

Absolute Advantage

A condition where a country, company, or individual can produce a good or service more efficiently than another entity, using fewer resources.