Which Statement Is True Regarding the Implied Warranty of Fitness

question 26

Multiple Choice

Which statement is true regarding the implied warranty of fitness for a particular purpose?

• A) It applies in every case in which an express warranty is found.
• B) It applies in every case in which an implied warranty of merchantability is found.
• C) It is a common law doctrine not followed by the UCC which recognizes only the implied warranty of merchantability.
• D) It applies in every sales transaction involving a merchant.
• E) It may be applied to sellers who are not merchants.

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Definitions:

Relative Market Share

A measure of a company's market share compared to its largest competitor, indicating competitiveness and market dominance.

Financial Projections

A bottom-line numerical estimate of the organization’s profitability.

Break-Even Analysis

An evaluation to determine the point at which the revenue from a product or service equals the costs, indicating that no profit or loss is made.

BCG Matrix

A strategic planning tool that uses graphical representations of a company’s products and services to help management decide where to invest, develop, or discontinue.