record store purchases 75 copies of the newest album by Justin Bieber. The agreement says that the albums are on a “Sale or Return” basis, meaning that if they do not sell within 60 days, the store can return them to the record company for a complete refund. The record store burns down. Who is responsible for bearing the cost of the loss of the albums? 1.The seller, since they retained title to the albums 2.They split it, as it was a mutually beneficial contract 3.The buyer, since it is a Sale or Return contract 4.The seller, because it is a Sale on Approval contract, even though it was written as Sale or Return 5.Nobody, because Justin Bieber albums have no value
record store purchases 75 copies of the newest album by Justin Bieber. The agreement says that the albums are on a “Sale or Return” basis, meaning that if they do not sell within 60 days, the store can return them to the record company for a complete refund. The record store burns down. Who is responsible for bearing the cost of the loss of the albums? 1.The seller, since they retained title to the albums 2.They split it, as it was a mutually beneficial contract 3.The buyer, since it is a Sale or Return contract 4.The seller, because it is a Sale on Approval contract, even though it was written as Sale or Return 5.Nobody, because Justin Bieber albums have no value
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A record store purchases 75 copies of the newest album by Justin Bieber. The agreement says that the albums are on a “Sale or Return” basis, meaning that if they do not sell within 60 days, the store can return them to the record company for a complete refund. The record store burns down. Who is responsible for bearing the cost of the loss of the albums?
1.The seller, since they retained title to the albums
2.They split it, as it was a mutually beneficial contract
3.The buyer, since it is a Sale or Return contract
4.The seller, because it is a Sale on Approval contract, even though it was written as Sale or Return
5.Nobody, because Justin Bieber albums have no value
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