Bike Shop Sells a Trail Bike to Cian

question 21

Multiple Choice

Bike Shop sells a trail bike to Cian. When Cian rides the bike, the frame breaks apart. The cause is something that Bike Shop did not know about and could not have discovered. This is a breach of

• A)a warranty of title.
• B)the implied warranty of merchantability.
• C)an express warranty.
• D)puffery.

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Definitions:

Unrecorded Patents

Patents that an organization owns which have not been recorded in its financial statements.

Dividends

Payments made by a corporation to its shareholder members, usually derived from profits.

Outstanding Voting Common Stock

The shares of a company held by shareholders that are entitled to vote and are not held by the company itself.

Amortization

The process of gradually writing off the initial cost of an asset over a period, typically for intangible assets.