Which One of the Following Statements Is False with Respect

question 139

Multiple Choice

Which one of the following statements is false with respect to who bears the risk of loss in a sale-of-goods contract?

• A) When unascertained or future goods are involved, the risk transfers once a reasonable time has passed.
• B) The risk of loss may depend on who holds title.
• C) The parties can contradict the provisions of the Sale of Goods Act on this question.
• D) Where repairs have to be done before delivery, the risk passes when the repairs are made and notice given.
• E) The risk of specific goods may pass upon formation of the contract.

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Definitions:

Short-Term Payables

Liabilities owed by a company that are due within one year, often including accounts payable, wages, and taxes.

Gross Working Capital

The total amount of a company's current assets, which are assets likely to be converted into cash within one year.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the business.

Short-Term Debt

Financial obligations that are due for repayment within one year.