Which of the Following Is True of an Implied Warranty

question 27

Multiple Choice

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

• 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:

Accounts Payable

Liabilities to creditors arising from purchases of goods, services, or loans, representing amounts a company owes and must pay in the near term.

Buildings

Structures such as offices, warehouses, and factories owned by a company for the purpose of conducting business operations.

Chart Of Accounts

A systematic list of all account titles and numbers used by a business to organize its financial transactions and prepare financial statements.

Alphabetize

The act of arranging words or other textual elements in order according to the sequence of the letters in the alphabet.