A Salesperson Tells a Customer,"Ninety Percent of the People We've

question 59

Multiple Choice

A salesperson tells a customer,"Ninety percent of the people we've sold these tires to over the past five years have gotten at least 25,000 miles of use out of them without any problems.Therefore,I can assume that you should get no less than 30,000 miles with them given the way you drive." The salesperson:

• A) may be creating an expressed warranty.
• B) is engaging in false advertising.
• C) could never be held responsible for the tire's longevity.
• D) may be creating an implied warranty of merchantability.
• E) is creating a warranty of title.

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Definitions:

Payroll Department

The Payroll Department is responsible for managing employee compensation, including calculating wages, withholding taxes, and distributing paychecks.

Last Week's Wages

The total amount of compensation paid to employees for their work in the previous week.

Periodic Inventory Method

An accounting method that records inventory purchases and sales periodically, typically at the end of an accounting period.

Repairs Expense

The cost associated with fixing or restoring property, equipment, or machines to their original condition, considered an expense on the income statement.