Caveat Emptor,which Means "Let the Buyer Beware," Functions to Limit

question 56

Multiple Choice

Caveat emptor,which means "let the buyer beware," functions to limit the liability of sellers.However,it is not a rigid rule.An situation in which a seller would NOT be able to use this defence would be if

• A)the goods are in existence and are specific items that may be inspected by the buyer.
• B)the buyer had every opportunity to inspect the goods.
• C)the seller appeared to be knowledgeable about the product.
• D)the seller made no misrepresentation concerning the goods.
• E)the seller has made misrepresentations about the goods.

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Definitions:

Debt Ratio

A financial metric comparing the total debt of a company to its total assets, indicating the proportion of a company's assets that are financed by debt.

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded in the books, representing liabilities that a company owes.