The Implied Warranty of Merchantability Is Implied at the Time

question 76

True/False

The implied warranty of merchantability is implied at the time of contracting if: (1)the seller or lessor has reason to know the particular purpose for which the buyer is purchasing the goods or the lessee is leasing the goods; (2)the seller or lessor makes a statement that the goods will serve this purpose; and (3)the buyer or lessee relies on the seller's or lessor's skill and judgment and purchases or leases the goods.

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Definitions:

Standard Costs

Predetermined or estimated costs used for planning and control purposes in budgeting and cost management.

Stockholders

The owners of a corporation.

Standard Costs

Predetermined costs for materials, labor, and overhead that are used as benchmarks to evaluate actual production costs.

Technology

The application of scientific knowledge for practical purposes, especially in industry and in our daily lives to solve problems or create useful products.