Final answer:
In merchandising transactions, buyers and sellers must determine who pays freight costs and bears the risk during transportation, with strategies like money-back guarantees helping to secure customer trust.
Step-by-step explanation:
The buyer and seller must agree on who is responsible for paying any freight costs and who has the risk of loss during transportation for merchandising transactions. This is a critical aspect of the sales contract as it determines the point at which the responsibility for the goods transfers from the seller to the buyer. In the goods market, effective strategies such as offering a money-back guarantee can encourage customers to make a purchase by providing them with a sense of security, particularly when buying goods that they cannot physically inspect beforehand, such as through online shopping or mail-order catalogs.