Pipe Company Includes in Its Contracts a Provision That Reads

question 16

Multiple Choice

Pipe Company includes in its contracts a provision that reads, in large red letters, "There are no warranties that extend beyond the description on the face hereof." This disclaimer negates

• A)the implied warranty of fitness for a particular purpose.
• B)the implied warranty of merchantability.
• C)the implied warranty of title.
• D)none of the choices.

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Definitions:

Rate of Profit

A measurement, usually expressed as a percentage, reflecting the profitability of an investment or business compared to the initial cost.

Overhead Expenses

Indirect costs of a business that are not directly linked to a specific product or service, such as rent, utilities, and administrative expenses.

Reclining Chair

A comfortable chair that adjusts to support various sitting and lying positions, often with a tilting back and raising footrest.

Overhead Expenses

Costs that are not directly tied to the production of goods or services, such as rent, utilities, and administrative expenses.