Which of the Following Statements Is TRUE

question 52

Multiple Choice

Which of the following statements is TRUE?

• A) The Sale of Goods Act always imposes an implied condition that the goods are suitable for the buyer's purpose.
• B) Although the parties are generally free to accept or reject parts of the Sale of Goods Act, they cannot decide to treat a statutory condition as if it was a warranty.
• C) The Sale of Goods Act now classifies a number of implied obligations as innominate terms.
• D) If there is a breach of contract under the Sale of Goods Act, the plaintiff must use the statutory remedies rather than the remedies that are generally available for a breach of contract.
• E) The basic distinction between conditions and warranties is the same under both the Sale of Goods Act and the general law of contracts.

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Definitions:

Cumulative Preferred Stock

A type of preferred stock where dividends not paid in full accumulate and must be paid out before any dividends can be distributed to common stockholders.

Convertible Bonds

Bonds that can be converted into a predetermined amount of the company's equity at certain times during its life, usually at the discretion of the bondholder.

Diluted Earnings Per Share

A measure of a company's profitability that shows the potential decrease in earnings per share if all convertible securities were exercised or converted into shares.

Stock Dividend

A dividend payment made by a corporation to its shareholders in the form of additional shares, rather than cash.