Asked by Nicole Stout on May 03, 2024
Verified
In a sale on approval:
A) possession, but not title, is transferred to the buyer for a stated period of time.
B) possession and title are transferred to the buyer for a stated period of time.
C) title, but not possession, is transferred to the buyer for a stated period of time.
D) neither title nor possession is transferred to the buyer for a stated period of time.
Sale on Approval
A transaction agreement where the buyer has the right to return the item within a specified period if it does not meet their satisfaction.
Title
The formal right of ownership of property, which may include real estate or vehicles, among others.
Possession
The act of having physical control or ownership of an object or property.
- Recognize various sales categories and their distinct legal ramifications, including sale on approval and sale or return scenarios.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
A
Explanation :
In a sale on approval, the buyer is given possession of the goods for a certain period of time to decide whether to accept them, but the title (ownership) remains with the seller until the buyer accepts the goods.
Learning Objectives
- Recognize various sales categories and their distinct legal ramifications, including sale on approval and sale or return scenarios.