To Which of the Following Transactions Would the Implied Warranty

question 69

Multiple Choice

To which of the following transactions would the implied warranty of merchantability apply?

• A) the sale of a used toaster by a homeowner at a garage sale
• B) the purchase of a bag of potato chips from a vending machine
• C) the sale of a new house by a contractor
• D) all of the above
• E) none of the above

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Definitions:

Equity Preservation

Strategies and practices aimed at maintaining or increasing the value of shareholders' equity in a company.

Optimal Way

The most efficient or effective method for achieving a specific goal or outcome.

Serious Cash Shortage

A financial situation where an entity lacks sufficient funds to cover its immediate or short-term obligations, leading to potential liquidity issues.

Venture

An undertaking that is typically risky but offers the potential for significant rewards, often associated with new businesses or startups.