Explain 'sale by sample' method of selling. Which types of goods are sold using this method?

Sale by Sample — Under this method, a small sample or specimen of the product is shown to the buyer. If the buyer is satisfied with the sample, he places a bulk order on the basis of the sample. The seller is then bound to supply goods that match the quality of the sample.

Types of goods sold by this method — This method is used in case of bulk or homogeneous commodities such as foodgrains, pulses, tea, coffee, sugar, cotton, wool and other agricultural produce, where the entire lot is identical to the sample.