If a Buyer Repudiates a Contract for Identified, Conforming Goods

question 39

Multiple Choice

If a buyer repudiates a contract for identified, conforming goods before risk of loss has passed to him/her, _____.

• A) the buyer is liable for a commercially reasonable time for any loss or damage to the goods that is not covered by the seller's insurance
• B) the seller is liable for a commercially reasonable time for any loss or damage to the goods
• C) the buyer and the seller must share the loss equally
• D) the buyer is not liable for any loss or damage to the goods

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Definitions:

Leverage Ratio

A financial metric used to assess a company's ability to meet its financial obligations, calculated as the ratio of its total debt to its equity, assets, or other benchmarks.

Bank Capital

The financial resources held by a bank that acts as a cushion against potential losses, consisting of equity, retained earnings, and other reserves.

Assets

Resources owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans received from the central bank's discount window.