To Avoid Implied Warranties in the Sale of Goods to a Consumer

question 45

Multiple Choice

To avoid implied warranties in the sale of goods to a consumer, the seller should make it absolutely clear (as for example a written statement) that the goods are sold

• A) with no known defects.
• B) in A-1 condition.
• C) "as is."
• D) as merchantable only.

---

Definitions:

Beginning Inventory

The value of all the inventory that a company has at the start of an accounting period, before any purchases or sales have been made.

Ending Inventory

The total value of all inventory that a business has in stock at the end of an accounting period.

Direct Materials

Raw materials that can be directly attributed to the production of a specific product.

Direct Materials

Raw materials and components that are directly used in the manufacturing of a product.