Exploring Non-Delivery and Non-Performance in Commercial Transactions

B

In the context of the Certified Fraud Examiner (CFE) exam question regarding delivery and services, we are presented with four answer options:

A. Until installation and customer testing and acceptance has occurred. B. A written order exists but contains a right of return. C. Both A & B. D. Neither A nor B.

Let's break down each option to understand the conditions under which delivery has not occurred or services have not been rendered.

A. Until installation and customer testing and acceptance has occurred: This option suggests that delivery has not occurred or services have not been rendered until the installation of the product or service has taken place, followed by customer testing and acceptance. In other words, simply delivering the product or service is not enough; it must also be installed and approved by the customer through testing.

B. A written order exists but contains a right of return: This option indicates that delivery has not occurred or services have not been rendered if there is a written order that includes a provision allowing the customer to return the product or service. In such cases, until the customer exercises their right of return, the delivery or service is considered incomplete.

C. Both A & B: This option combines the conditions mentioned in options A and B. It states that delivery has not occurred or services have not been rendered until both installation and customer testing and acceptance have taken place, as well as when a written order includes a right of return. So, to fulfill the delivery or service requirements, both conditions must be met.

D. Neither A nor B: This option suggests that delivery has occurred or services have been rendered regardless of whether installation, customer testing and acceptance, or a right of return exists. In other words, delivery is considered complete and services are considered rendered even if none of the conditions mentioned in options A and B are present.

Considering the explanations above, the correct answer to the question would be option C: Both A & B. Both the installation and customer testing/acceptance and the existence of a written order with a right of return are required for delivery not to have occurred or services not to have been rendered.