Jim Goes to Carol's Computer Center CCC) to Buy a New

question 11

Multiple Choice

Jim goes to Carol's Computer Center CCC) to buy a new laptop. While he is there, the saleswoman gives him a sheet of paper listing the warranties for all the laptops. Jim is a tram driver for Walt Disney World in the Goofy parking lot. He asks the saleswoman if the laptop he is thinking about buying will stand the heat of an Orlando summer in the Goofy lot. After she thinks for a minute about how hot it likely gets on a Walt Disney World tram during the summer in Orlando, she tells him that the laptop should be fine for Jim's intended purpose. Jim buys the laptop and uses it to help people keep track of where they parked. One day, while cruising around Goofy 8, Jim's laptop overheats and catches on fire. He is outraged, and he takes the laptop to CCC. CCC refuses to take the laptop back, because it wasn't approved for use in sweltering heat. Does Jim have any recourse?

• A) Yes, but only if CCC is a merchant.
• B) Yes, because the saleswoman knew what use Jim intended to put the computer and warranted that the computer would work for him.
• C) No, he would have to contact the manufacturer of the computer, not the store where he bought it.
• D) No, because the manufacturer couldn't normally expect that its computer would be used in such extreme circumstances.

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Definitions:

Ideal Standards

Benchmark levels of performance set at the highest achievable conditions without allowances for normal inefficiencies.

Master Budget

The Master Budget is a comprehensive financial planning document that consolidates all of a business's individual budgets, providing a complete financial overview for a future period.

Standard Cost

A predetermined cost of manufacturing, distributing, and selling a product that serves as a benchmark for measuring performance.

Budgeted Cost

An estimated cost for planned transactions or activities, often used in budgeting processes for performance evaluation and planning purposes.