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 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.

Answer 1

The correct answer is B. The vendor has latitude in establishing prices for the other​ party's goods or services.

Step-by-step 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.