In a Sale of Goods, the Use of the Term

question 32

Multiple Choice

In a sale of goods, the use of the term "as is" indicates

• A) to the buyer that there are no implied warranties upon which the buyer may depend.
• B) that in a sale the seller warrants that the goods are merchantable.
• C) to the buyer that a sales contract needs no consideration.
• D) that the sale includes most implied warranties.

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Definitions:

Non-interest-bearing

A financial term describing a debt or loan that does not accrue interest over time.

Simple Interest

A method of calculating the interest charge on a loan based on the original principal balance and not on accumulated interest.

T-bill

A short-term government security with maturity periods ranging from a few days to 52 weeks.

Prevailing Yield

The current return rate on an investment, typically referring to bonds or other fixed-income securities.