Asked by Katherine Fortune on Jul 21, 2024
Verified
Barley that fills Cultivator Co-op's silo is fungible if the grain is
A) alike naturally, by agreement, or by trade usage.
B) fundamentally different.
C) good, edible, and marketable.
D) rotting due to a fungus caused by a leaky roof and a delay in shipping.
Fungible
Items or assets that are interchangeable and of such a nature that one part or quantity may replace another equal part in paying a debt or settling a deal.
Cultivator Co-Op
A cooperative association formed by crop producers to collaborate in cultivation efforts and share resources or benefits.
Grain
Small, hard seeds, especially the seeds of various food crops like wheat, corn, rye, oats, and barley, or the plants themselves.
- Identify the conditions under which goods are considered fungible.
Verified Answer
RA
Rania AssafJul 24, 2024
Final Answer :
A
Explanation :
Fungibility refers to the property of a good or a commodity whose individual units are essentially interchangeable. For barley to be considered fungible, it must be alike naturally, by agreement, or by trade usage, meaning any unit of barley can replace another unit without any loss of value or utility. This is what makes it possible for such goods to be traded or exchanged easily.
Learning Objectives
- Identify the conditions under which goods are considered fungible.