Mary runs a ski shop at a popular ski resort.She is approached by Sandy who has several hundred ski hats she would like Mary to buy for her shop.These hats are very funky and artistic.From Mary's experience,she believes that they will either be a big hit and will sell out quickly,or people will look at them and say,"how interesting" and move on.Mary says she does not want to be stuck with a bunch of the hats.Mary says that she will buy them,but wants Sandy to agree to take any back at the end of the season if they didn't sell and Mary decides to not keep them until the following season.This arrangement is:

Question

Quizplus · Accepted Answer

This is a sale or return arrangement, where Mary is agreeing to buy the hats but with the condition that Sandy will take back any unsold hats at the end of the season. This allows Mary to avoid being stuck with a surplus of hats if they don't sell well. A sale on approval would involve Mary taking the hats on a trial basis and deciding whether or not to keep them, while a consignment would involve Mary selling the hats on Sandy's behalf and paying her a percentage of the sales. The option D is incorrect because Mary is not making an illusory promise, she is making a conditional promise based on the agreement for Sandy to take back unsold hats.

Mary Runs a Ski Shop at a Popular Ski Resort