Which of the Following Is Not a Requirement That Must

question 24

Multiple Choice

Which of the following is not a requirement that must be satisfied in order for a term requiring goods to be fit for their purpose to be implied into a contract for sale of goods?

• A)At the time the contract was formed the buyer made the intended purpose known to the seller.
• B)The buyer made the intended purpose known to the seller even where the goods only had one purpose.
• C)The buyer relied upon the seller's skill and judgement.
• D)The seller normally deals in goods of this description.

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Definitions:

Economic Profits

The surplus remaining after total costs are deducted from total revenue, considering both explicit and implicit costs.

Economic Profit

The distinction in a corporation's gross income versus its overall charges, factoring in both apparent and assumed costs.

Zero Economic Profit

A situation where a company's total revenues exactly equal its total costs, implying normal profit but no economic profit above that.

Competitive Price-searcher Market

A market structure where companies have some control over the prices they charge but must also consider the prices set by their competitors.