Chipotle Experienced E

question 7

Multiple Choice

Chipotle experienced E.coli outbreaks in several of its restaurants during 2016.A restaurant experiencing food contamination:​

• A)​is liable under the implied warranty of merchantability for any harm to customers.
• B)​is liable under the implied warranty of fitness for a particular purpose to customers.
• C)is not liable to customers unless it was aware of the food problems and sold the food anyway.
• D)both a and b

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Definitions:

Traceable Fixed Expense

A fixed expense that can be directly associated with a specific business segment or area, making it easier to allocate costs accurately.

Net Operating Income

The profit generated from a company's operational activities, excluding expenses and revenues that are not related to the core business operations.

Percentage Change

A mathematical calculation that indicates the degree of change over time, representing the difference between an old and new value as a percentage of the old value.

Traceable Fixed Expense

A fixed cost that can be directly linked to a specific segment of a business and would disappear if the segment did not exist.