Clyde Clydeford Is an Expert in Stradivarius Violins

question 7

Multiple Choice

Clyde Clydeford is an expert in Stradivarius violins. In fact, Clyde has an excellent collection and is considered the best violist in the world at playing "The Devil Went Down To Georgia" by Charlie Daniels. Drawn by Clyde's reputation, Nick Stradivarius, a distant relative of the great violin designer, seeks out Clyde to buy one of his prized violins. Nick tells Clyde that he would like a violin that will allow him to perfect his "fiddlin'" with his traveling country music band. Clyde is reluctant to sell a Stradivarius to such an obvious rube, but the money is right so he decides to go through with the sale. Nick, relying on Clyde's expertise, asks him which violin he should purchase. Clyde talks to Nick about several of the violins and finally recommends a specific one. Nick purchases the violin and leaves happy, knowing that he now owns a piece of his family's distant history and a fine instrument that will help him perform better on stage. When Nick actually uses the violin in a performance he is shocked to hear the horrible sound emanating from his bow. It turns out that Clyde sold him a violin that is fit for a small practice room, so the sound doesn't resonate properly on a large stage. Nick is furious. Is there any implied warranty of fitness for a particular purpose Nick can rely on?

• A) Yes, because sale of a Stradivarius violin carries with it the implied term that the violin will be suitable for performances.
• B) No, because only a merchant can create an implied warranty of fitness for a particular purpose and Clyde is not a merchant.
• C) Yes, because Nick relied on Clyde and his expertise in Stradivarius violins.
• D) No, because Nick should have known which violin to buy because he presumably has some knowledge in the area.

Compute payments for loans and leases using time value of money concepts.

Determine the best financial option between lump sum and annuity payments.

Understand the application of compound interest in savings and retirement planning.

Understand the basic concept of present value and how to compute it for lump sums and annuities.

---

Definitions:

Given

A term used to denote certain conditions or variables are assumed to be true or established in the discussion, analysis, or problem that follows.

Marginal Probability

The probability of an event occurring, taking into account all possible related events.

P(A And B)

The joint probability of two events occurring simultaneously, within a specified context.

Probability Notation

The standard symbols and formulations used to represent probabilities in mathematical expressions.