A Judge Has Found That Clear View Windows Inc

question 8

Multiple Choice

A judge has found that Clear View Windows Inc.is liable to pay damages to a client for breach of one of its implied obligations under the Sale of Goods Act.Which of the following statements best describes the nature of the implied term breached by Clear View?

• A) condition
• B) pre contractual term
• C) warranty
• D) covenant

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Definitions:

Accounting Break-Even

The point at which total revenues equal total expenses, and the business does not make a profit or loss.

Depreciation

A financial approach that spreads the price of a tangible asset over the period it is expected to benefit the company.

Annual Fixed Costs

The total of all business expenses that are consistent and unchanged throughout the fiscal year, regardless of production levels or sales volume.

Contribution Margin

The contribution margin represents the portion of sales revenue that is not consumed by variable costs and contributes to covering the company's fixed costs.