If the Buyer Inspects the Goods Before Entering into the Contract

question 15

Multiple Choice

If the buyer inspects the goods before entering into the contract, then implied warranties:

• A) still apply to any defects.
• B) will in no circumstances be applicable.
• C) do not apply to defects that are apparent upon reasonable inspection.
• D) apply only to defects noted by the buyer upon inspection.

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Definitions:

Business Organization

A legally recognized entity established to conduct commercial activities, ranging from sole proprietorships to corporations.

Advantage

The condition of being in a favorable or superior position relative to competitors or alternatives.

Treasury Stock

Shares initially part of the company's outstanding shares that have been repurchased by the company.

Par Value

Par value is the nominal or face value of a bond, share of stock, or a coupon as stated by the issuer.