A Breach of ________ Occurs If It Is Generally Accepted

question 10

Multiple Choice

A breach of ________ occurs if it is generally accepted in the trade that a certain product is always preassembled and the seller does not deliver the goods in that condition.

• A) the implied warranty of merchantability
• B) the implied warranty of fitness for a particular purpose
• C) the implied warranty of trade usage
• D) an express warranty
• E) an express warranty of quality

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Definitions:

Willingness to Pay

The maximum amount a consumer is prepared to spend for a good or service.

Baseball Game Ticket

A document or electronic card that grants the bearer entry to a baseball game.

Consumer Surplus

The distinction between the full amount consumers are willing and able to spend on a good or service and the actual sum paid.

Price Floor

A government or group-imposed price control or limit on how low a price can be charged for a product, above the equilibrium price.