A Statutory Term Requiring Goods to Be 'Fit for Their

question 21

Multiple Choice

A statutory term requiring goods to be 'fit for their purpose' means:

• A)the actual goods sold must correspond with the description of the goods given at or before the time of the contract in advertising, packaging or signage.
• B)the goods sold must be of a quality one would reasonable expect taking into account relevant circumstances, including the price paid for the goods.
• C)the goods must be appropriate for use in accordance with their intended purpose.
• D)the seller has the right to sell the goods to the buyer.

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Definitions:

Fair Value

An estimate of the price at which an asset could be bought or sold in a current transaction between willing parties, not in a forced or liquidation sale.

Market Price

The current price at which an asset or service can be bought or sold in a competitive marketplace.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of stock rather than cash.

Stock Splits

Corporate actions that increase the number of shares outstanding, reducing the price per share but not changing the company's overall market capitalization.