Which of the Following Is True Under the UCC Regarding

question 57

Multiple Choice

Which of the following is true under the UCC regarding the requirement of privity in regard to a breach of warranty action?

• A) The UCC limits liability to those in privity with the seller who are injured by the goods.
• B) The UCC extends protection to those in privity with the seller who are injured by the goods and also to those in the buyer's household reasonably expected to use, consume, or be affected by the goods and who are injured by the goods.
• C) The UCC extends protection not only to those in privity with the seller, but also to any person who may reasonably be expected to use, consume or be affected by the goods and who is injured by the goods.
• D) The UCC has alternate provisions regarding the need for privity from which adopting states may choose.

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Definitions:

Operating Income

This is the profit realized from a business's ongoing operations, calculated as the difference between operating revenues and operating expenses.

Land Account

A type of asset account on the balance sheet representing the cost of land owned by a company.

Accounts Payable

Liabilities of a business that are due to be paid to creditors within a short period of time, typically one year.

Supplies Expense

This refers to the cost recorded for supplies used during an accounting period, not necessarily when they were purchased.