Identify the Incorrect Statement About an Implied Warranty of Merchantability

question 52

Multiple Choice

Identify the incorrect statement about an implied warranty of merchantability.

• A) The notion of implied warranty applies only to new merchandise.
• B) Every retailer selling goods makes an implied warranty of merchantability.
• C) By offering the goods for sale, the retailer implies that they are fit for the ordinary purpose for which such goods are typically used.
• D) Because of the potential legal liability that accompanies an implied warranty, many retailers will expressly disclaim at the time of sale any or all implied warranties and seek to mark a product "as is."
• E) Some retailers will not be able to avoid implied warranties of merchantability.

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Definitions:

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or other entity, presented in a structured manner.

Sales

The total revenue generated from goods or services sold by a company within a specific period.

Capital Gains

The income gained when the selling price of assets such as stocks, bonds, or real estate surpasses their original buying price.

Economic Growth

An increase in the production of goods and services in an economy over a period of time.