On March 1, Giselle Saw Harlan Demonstrating a New Type

question 41

Multiple Choice

On March 1, Giselle saw Harlan demonstrating a new type of widget at a trade show. On April 1, she ordered one from him. Under the terms of that contract, Harlan was required to deliver the widget on May 1 and Giselle was required to pay the entire purchase price of $10 000 on June 1. Harlan did not deliver the widget until May 15. Although Giselle accepted the item and agrees that it is in good working order, she is unhappy. The late delivery caused her to lose $5000 in profits. She should sue Harlan on the basis of his breach of an implied term

• A) that requires fitness for purpose.
• B) of merchantable quality.
• C) concerning description.
• D) that is classified as a condition, rather than a warranty.
• E) dealing with samples.

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Definitions:

Retained Earnings

Retained earnings refer to the portion of a company's profits that is retained or kept within the company instead of being paid out to shareholders as dividends, to be reinvested in business operations or to pay off debt.

Retained Earnings

Cumulative net earnings not distributed as dividends to shareholders, reinvested in the business or available for debt repayment.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate or instrument.