Tu-Thumbs Buys a Used Paint Sprayer from the Local Paint

question 45

Multiple Choice

Tu-thumbs buys a used paint sprayer from the local paint store.The sprayer had a large sign on it which said "ASIS." The dealer made no promises or statements concerning the performance of the paint sprayer.When Tu-thumbs attempts to spray paint his house,the trigger on the sprayer sticks in the "on" position and before Tu-thumbs can pull the electrical cord to cut the power,paint is sprayed all over his prize Borzoi dog that is scheduled to be shown in a dog show the next day.Tu-thumbs sues the dealership.Who wins?

• A)Dealer wins; there were no express warranties and all implied warranties have been successfully disclaimed.
• B)Tu-thumbs wins; he can recover on the basis of express warranties.
• C)Tu-thumbs wins; he can recover on the basis of the implied warranty of merchantability because the word "merchantability" was not used in the disclaimer.
• D)Dealer wins; even though there were implied warranties, the damage to the dog could not have been foreseen.

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Definitions:

Net Cash Inflows

The total amount of cash received minus cash outflows over a specific period, indicative of financial health.

Salvage Value

The estimated resale value of an asset at the end of its useful life.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period, used in capital budgeting to assess the profitability of an investment.

Average Rate

A figure representing the median value of a variable over a specific period, such as interest rates or currency exchange rates.