The Implied Warranty of Fitness for a Particular Purpose Arises

question 54

True/False

The implied warranty of fitness for a particular purpose arises when the customer relies on the retailer to assist or make the selection of goods to serve a particular purpose,usually because the consumer is unfamiliar with the merchandise.

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Definitions:

T-bond Futures

Financial contracts obligating the buyer to purchase U.S. Treasury bonds at a specified price at a future date, used for hedging and investment purposes.

Cross-hedge

A hedging strategy using a contract that has price movements correlated with, but not identical to, the asset being hedged.

Long Futures Contract

An agreement to buy a particular commodity or financial instrument at a predetermined price at a specified time in the future, indicating the buyer's bullish outlook.

Asset Price

The current market value or price at which an asset, such as a stock, bond, or commodity, can be bought or sold.