TopKnotch Mfg. Co. has a production cost of $280. It sells its product to a wholesaler for $400. The wholesaler then sells the item to retailers for $500 and the retailers sell the item for $1,000. Which of the following is true about this markup chain?
A. The retailers' markup is 100 percent.
B. The wholesaler's markup is 25 percent.
C. The manufacturer is taking a markup of 30 percent.
D. None of these answers is correct.
Answer: C
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An assignment of a negotiable instrument is generally prohibited.
Answer the following statement true (T) or false (F)
Jack is a guest in Harry's home. While there, he goes into the library and picks up a music box that is part of Harry's collection. Jack overwinds the stem and it breaks. Hoping Harry won't notice, Jack takes the music box for repair to a jeweler who sells similar ones. The jeweler fixes it, but forgets to tag it and an unsuspecting clerk sells it to Robert. Jack is frantic. Can Harry get the
music box from Robert? A) No, the jeweler gives good title to a bona fide purchaser for value B) No, the jeweler was not a merchant with regard to the music box C) Yes, Robert was not a buyer in the ordinary course of business D) Yes, Robert has assumed only Jack's title, which is no title at all
Bertha, from Chicago, traveled to San Francisco to attend a conference. Her sister, Martha, lives in San Francisco and consequently, Bertha made arrangements to spend a couple of days with her sister. The next morning sitting at the breakfast table, Bertha realizes that she packed a mismatched pair of shoes (one is black and the other is blue). Luckily, Martha wears the same size of shoes and
lends Bertha a pair of black leather pumps. During the day, the shoes are damaged while Bertha is wearing the shoes. Bertha's duty of care would be a duty of A) extraordinary care, because this is a bailment for the sole benefit of the bailee. B) ordinary care, because this is a bailment with both parties receiving mutual benefits. C) only slight care, because this is a bailment for the sole benefit of the bailor. D) none, as the sisters would share without condition.
A creditor is one who lends money to, or allows goods or services to be purchased on credit by, another party, the:
a. payee b. debtor c. debtee d. financer e. recipient