Hari Sees an Advertisement in the Newspaper for the Sale

question 20

Multiple Choice

Hari sees an advertisement in the newspaper for the sale of home-distilled vodka at the local distillery.He makes a trip down to the distillery.Hari is cautious and asks to sample some of the vodka.After having a sip of the vodka, he is satisfied with the quality, and decides to purchase a barrel of the vodka.When he returns home, he discovers that the vodka in the barrel is of a much poorer quality than the vodka he tasted at the distillery.Hari:

• A)Can take action against the distillery for breach of the statutory implied term that goods will correspond with a sample of the goods in quality.
• B)Can take action against the distillery for breach of the statutory implied term that the goods will match their description.
• C)Has no legal redress as the statutory implied terms only apply to contracts between two corporations.
• D)Cannot object.There is no requirement of consistent quality.

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Definitions:

Materials Price Variance

The deviation from the standard to the real price of materials, calculated by multiplying this difference by the amount of materials bought.

Variable Overhead

Overhead costs that vary directly with the level of production or activity, such as electricity or material handling costs.

Direct Material

Raw materials that can be directly traced to the production of a specific product and are a significant component of its cost.

Variable Overhead

Costs of overhead that vary directly with the level of production, such as utilities or indirect materials.