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

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In a sale or return arrangement, the seller agrees to take back any unsold items from the buyer at a later time. This is exactly what Mary is proposing to Sandy with regards to the ski hats. Option B, a sale on approval, is when the buyer has a chance to test the product before deciding to buy it, which is not the case here. Option C, consignment, is when the seller keeps ownership of the goods until they are sold, which is also not applicable in this situation. Option D is incorrect because Mary's promise to buy the hats and possibly return them is not illusory, as she is truly agreeing to purchase them but with the clause that she may return them later.

Mary Runs a Ski Shop at a Popular Ski Resort