Which of the Following Is Not True Regarding the Warranty

question 69

Multiple Choice

Which of the following is not true regarding the warranty of habitability?

• A) It is an implied warranty.
• B) A majority of states hold that a builder-seller impliedly warrants a newly constructed house to be free of latent defects.
• C) In the majority of states,the buyer must inspect the property thoroughly before completing the sale,as any defect discovered only after the transaction is complete would not be the seller's responsibility.
• D) Many jurisdictions now require all sellers to disclose hidden defects that materially affect the property's value and that would remain undetected following a reasonable examination.

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Definitions:

Product Costs

The costs directly associated with the production of goods, including materials, labor, and manufacturing overhead.

Absorption Costing

A bookkeeping approach encompassing the entirety of production expenses, such as direct materials, direct labor, and both fluctuating and consistent overhead costs, within a product's price.

Production Costs

Expenses associated with the process of producing goods or services.

Short-term Pricing

Pricing strategies focused on immediate objectives rather than long-term goals, such as clearing out inventory or entering a new market.