(Topic 4) When a buyer receives goods, but payment is not due to the supplier until some later date, this is defined as:

The correct answer is B. Robinson-Patman Act (1936). USA Tires, LLC is a U.S. company that manufactures a high performance tire. It has $500 million in annual domestic sales. Customer A is located 50 miles from the USA Tires warehouse. Customer A orders 1,000 high performance tires per month at a price of $50 per tire. It has…

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Question

(Topic 4)

When a buyer receives goods, but payment is not due to the supplier until some later date, this is defined as:

Options

AGlass-Steagall Act (1933)
BRobinson-Patman Act (1936)
CFair Credit Billing Act (1975)
DFair Debt Collection Practices Act (1978)

How the community answered

(18 responses)

A
6% (1)
B
78% (14)
C
6% (1)
D
11% (2)

Explanation

USA Tires, LLC is a U.S. company that manufactures a high performance tire. It has $500 million in annual domestic sales. Customer A is located 50 miles from the USA Tires warehouse. Customer A orders 1,000 high performance tires per month at a price of $50 per tire. It has credit terms of 30 days. Customer B is located 40 miles from the USA Tires warehouse. Customer B orders 1,000 high performance tires per month at a price of $60 per tire. Customer B has credit terms of 20 days. Which legislation is being violated in the

Topics

#trade credit#open account terms#accounts payable#payment terms

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