In Basse and Selve v. Bank of Autralasia, the seller submitted a phony sample of ore to an inspection company to obtain a Certificate of Analysis showing high- grade ore. On the basis of the certificate, the seller paid for the documents and took delivery of the ore. The ore turned out to be worthless. The court ruled that:
A) the bank had an obligation to inspect the ore before paying for the
documents on behalf of the buyer.
B) the buyer had a cause of action against the chemist for fraud.
C) the bank had acted properly in paying the seller even though the ore did not conform to the contract because the certificate was regular on its face.
D) the bank had acted properly in paying the seller because the bill of lading was negotiable.
C
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The California Transit Authority implemented the Buy American policy when rebuilding portions of the earthquake-damaged San Francisco–Oakland Bay Bridge. The learning from the project was that the policy
a. promotes free trade. b. ensures welfare gains for the nation. c. encourages other nations to follow the Buy American policy. d. yields higher cost for government projects.
Cost structure refers to the relative proportion of:
A) variable costs to contribution margin. B) total costs to sales. C) fixed costs to variable costs. D) sales price per unit to variable costs per unit.
A conditional probability P(B|
A) is equal to its marginal probability P(B) if A) it is a joint probability. B) statistical dependence exists. C) statistical independence exists. D) the events are mutually exclusive. E) P(A) = P(B).
The ________ account is used to record the effects of cash overages and shortages from errors in making change or managing a petty cash fund.
Fill in the blank(s) with the appropriate word(s).