Which of the Following Is NOT Included Within the Code

question 70

Multiple Choice

Which of the following is NOT included within the Code definition of merchantability?

• A) Reasonably fit for the ordinary purposes for which the goods are used.
• B) Pass without objection in the trade under the contract description.
• C) In the case of fungible goods that they be of a quality that exceeds the description and be above average.
• D) Be of fair, average quality.

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Definitions:

Profit

The financial gain realized when the revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Rate of Markdown

The percentage decrease from the original price to the sale price.

Operating Expenses

Costs associated with the day-to-day operations of a business or organization.

Wholesale Price

The cost of goods sold in large quantities, usually to retailers rather than directly to consumers.