The Warranty of No Infringement Applies

question 64

Multiple Choice

The warranty of no infringement applies:

• A) by operation of law,but only to merchant sellers
• B) by operation of law to both merchant and nonmerchant sellers
• C) only if expressly stated,and even then only to merchant sellers
• D) only if expressly stated,but it can apply to both merchant and nonmerchant sellers

---

Definitions:

Employee Stock Options

A benefit offered by companies to their employees, giving them the right but not the obligation to buy the company's stock at a predetermined price during a specified period.

Intrinsic Value

The inherent, actual value of an asset, independent of its market value.

Underwater

A situation where the market value of an asset is less than the amount owed on it, often used in reference to mortgages.

Expiration Date

The last day on which an option or futures contract is valid or can be exercised.