How May a Buyer Waive Implied and Express Warranties

question 71

Multiple Choice

How may a buyer waive implied and express warranties?

• A) A buyer may waive both implied and express warranties through (1) failing to examine goods for which an express warranty was created by a sample or model or (2) failing to comply with the seller's request to inspect the goods.
• B) A buyer may waive an implied warranty by failing to comply with the seller's request to inspect the goods, but an express warranty may only be waived by failing to examine goods for which an express warranty was created by a sample or model.
• C) A buyer may waive an express warranty by failing to comply with the seller's request to inspect the goods, but an implied warranty may only be waived by failing to examine goods for which an express warranty was created by a sample or model.
• D) A buyer may waive both implied and express warranties only through signing a statement that such warranties are waived.
• E) A buyer may waive implied warranties only through signing a statement that such warranties are waived, but a buyer may waive express warranties through (1) failing to examine goods for which an express warranty was created by a sample or model or (2) failing to comply with the seller's request to inspect the goods.

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Definitions:

General Journal Entries

General journal entries are records of financial transactions in the general journal, making note of the debit and credit of each transaction according to accounting principles.

Perpetual Inventory Method

An accounting method that continuously tracks inventory levels and costs, updating the inventory account after each purchase or sale.

General Journal Entries

The initial record where financial transactions are first entered into the accounting system, before summarizing or posting to ledgers.

Perpetual Inventory Method

An inventory system that updates inventory accounts after each purchase or sale on a continuous basis.