Which of the Following Is True of How an Implied

question 33

Multiple Choice

Which of the following is true of how an implied warranty of merchantability is created?

• A)It is made by the buyer or lessee.
• B)It is implied by law if the seller or lessor is a nonmerchant.
• C)It is implied by law if the seller or lessor is a merchant.
• D)It has to be explicitly expressed in the contract.

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Definitions:

Legitimate Business Purpose

A justifiable reason or objective underlying a company's activities or decisions, often assessed in legal contexts to determine the validity of business conduct.

Illegal Agreements

Contracts or arrangements that are prohibited by law due to their nature, purpose, or the means by which they are achieved.

Unconscionable Agreements

Contracts or agreements that are so unfairly one-sided that they are considered void under the law due to the significant imbalance in power and information between the parties involved.

Contracts of Adhesion

Contracts of adhesion refer to standard-form agreements prepared by one party, leaving the other party little or no ability to negotiate more favorable terms.