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If a seller knows she requires additional time to settle due to legal issues with the stock certificate, which of the following is TRUE?

A A seller's option may be requested and implemented if the buyer agrees
B A seller's option may be requested and implemented and only requires the seller's consent
C Transactions can only settle regular-way no exception may be made
D Transactions can only settle regular-way or same day no other exception may be made

User Rhexis
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1 Answer

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Final answer:

A)A seller's option may be requested with buyer's agreement when additional time is needed to settle due to legal issues with the stock certificate. To reassure a buyer with imperfect information, a seller should be transparent, offer warranties, and consider compensation or incentives.

Step-by-step explanation:

If a seller knows she requires additional time to settle due to legal issues with the stock certificate, the correct answer is: A seller's option may be requested and implemented if the buyer agrees. This means that the seller must discuss the need for additional time with the buyer, and if the buyer consents, they can agree upon a later settlement date. This is known as a "seller's option" and it is not a unilateral decision; both parties' consent is required.

In order to reassure a possible buyer who is faced with imperfect information, a seller of goods might employ several strategies:

  • Provide as much detailed and transparent information as possible about the product and the circumstances causing the delay.
  • Offer a warranty or guarantee to alleviate concerns about the quality or condition of the goods.
  • Propose a suitable compensation for the delay or offer other incentives to maintain the buyer's interest and trust.
User Tadiwanashe
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