American Exercise Gear (AEG)learned from Its Customers That Its Yoga

question 37

Multiple Choice

American Exercise Gear (AEG) learned from its customers that its yoga pants were made of see-through fabric.  AEG had ordered the fabric from one supplier and then contracted to have the yoga pants manufactured by another company with its logo on them.  Which of the following statements is true?​

• A)AEG is not liable to its customers for the problems with the yoga pants unless it made a representation that the yoga pants were not see-through.
• B)AEG is liable to the customers, but neither the fabric supplier nor the manufacturer have any liability.
• C)AEG is liable to its customers for the pants problem, but it will be unable to collect any damage from the fabric supplier or manufacturer.
• D)None of the above

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Definitions:

Inflation Rate

The rise in the average cost of goods and services within an economy over a specific period, expressed as a percentage.

Present Value

The current valuation of a prospective sum of money or cash flow series, factoring in a designated rate of return.

Investment

The allocation of resources, usually money, into assets with the expectation of generating income or profit in the future.

Entire Wealth

The total value of all assets owned by an individual or entity, minus any debts.