Which of the following is true of a buyer with an output contract?

Question

Quizplus · Accepted Answer

A buyer with an output contract is obligated to purchase all or a specified quantity of the goods sold by the seller. This type of contract is typically used when the seller is producing a unique or specialized product that the buyer needs exclusively, such as a manufacturer of a specific electronic part supplies it to an automobile manufacturer under a contract termed as the output contract. Therefore, option C is the correct answer. Option A is incorrect because the buyer can take legal action if the seller does not fulfill the obligation to sell all the goods to the buyer. Option B is incorrect because an output contract specifies the quantity and frequency of goods to be delivered, leaving no room for the buyer to choose when and what he or she wants to buy. Option D is incorrect because an output contract typically includes a "best-efforts" clause, requiring the seller to produce and deliver as many goods as they can.

Which of the Following Is True of a Buyer with an Output