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:

Pawn Shop

A retail business that lends money to people who bring in valuable items which they leave with the pawnbroker as collateral.

Payback Period

The time it takes for an investment to generate an amount of income or cash equal to the cost of the investment.

Initial Cost

The original cost of acquiring an asset, including purchase price and any expenses incurred to put the asset into use.