Which of the Following Is Not Necessary in Order for the Implied

question 72

Multiple Choice

Which of the following is not necessary in order for the implied warranty of fitness for a particular purpose to apply?

• A) The seller knows or has reason to know of the buyer's intended use of the good.
• B) The seller is a merchant.
• C) The seller states that the goods will serve the purpose of the buyer's intended use.
• D) The buyer buys in reliance on the seller's skill and judgment.

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Definitions:

Fair Value

Fair value is an estimate of the market value of an asset or liability, based on current prices in an active market or through valuation techniques.

Financial Statements

Reports that provide detailed information on a company's financial performance, including balance sheet, income statement, and cash flow statement.

Fair Value Method

An accounting approach used to assess and assign a value to assets or liabilities based on current market prices or the estimated prices of similar transactions.

Net Income

The conclusive income of a corporation post all deductions for costs and taxes from its aggregate revenue.