Ask Question
1 September, 01:02

All of the following are indicators that the vendor is acting as an agent instead of as a principal, except: A. The other party is primarily responsible for fulfilling the contract. B. The vendor has latitude in establishing prices for the other party's goods or services. C. The vendor does not have inventory risk. D. The vendor's consideration is in the form of a commission.

+5
Answers (1)
  1. 1 September, 01:10
    0
    The correct answer is B. The vendor has latitude in establishing prices for the other party's goods or services.

    Explanation:

    In an ideal scenario, both sellers and buyers should agree on the price and conditions of a product, in order to avoid speculation and subsequent conflicts. In the event that a seller is the one who has the freedom to decide the conditions such as price or distribution, he is acting as a commercial agent, since he is autonomously deciding on aspects that should correspond to the buyer as the main agent.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “All of the following are indicators that the vendor is acting as an agent instead of as a principal, except: A. The other party is ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers