Utah Contractor Practice Exam

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Prepare for the Utah Contractor Exam with comprehensive quizzes and study resources. Gain confidence by accessing multiple-choice questions designed to enhance your knowledge and skills for the licensing exam.

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What happens if a contractor pays for materials C.O.D.?

The contractor pays upon delivery
The contractor pays before delivery
The contractor pays after use
The contractor may receive a discount

The correct answer is: The contractor pays upon delivery

When a contractor pays for materials C.O.D., it signifies that payment is made upon delivery. This means that the contractor is responsible for paying the supplier at the moment the materials arrive, ensuring that the vendor is compensated when the goods are physically handed over. This payment method offers immediate settlement, which can be beneficial for both the contractor and the supplier. The contractor can confirm that the materials are in satisfactory condition before completing the payment, while the supplier ensures that they receive payment at the point of transfer, reducing the risk of non-payment. Other payment timing scenarios, such as paying before delivery or after use, do not apply to C.O.D. arrangements, making the selected answer accurate in the context of the question. C.O.D. arrangements typically do not automatically confer discounts; any discounts would depend on the specific terms negotiated between the contractor and the supplier.