A Warranty That Arises When a Seller or Lessor Warrants

question 47

True/False

A warranty that arises when a seller or lessor warrants that the goods will meet the buyer's or lessee's expressed needs is called implied warranty of fitness for a particular purpose.

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Definitions:

Borrow

To take or receive something with the intention of returning it, often referring to money with an obligation to pay back the original amount plus interest.

Yearly Payments

Recurrent payments made over the span of a year, often associated with loans, leases, or annuities.

Future Value

The estimated amount of money an investment is expected to be worth in the future, taking into account a specific rate of growth or interest.

Discount Rate

A rate of interest used in discounted cash flow analysis for the purpose of determining the present value of incoming future cash streams.