Fred Buys Running Shoes from Gear Store, a Shoe Store

question 25

Multiple Choice

Fred buys running shoes from Gear Store, a shoe store specifically for runners and staffed by seasoned racers. He tells the clerk that he wants the shoes to compete in High Pace Triathlon. The clerk recommends the TriRace model. The shoes break apart during the competition, causing Fred to fall and sustain an injury. The seller most likely breached

• A) an express warranty.
• B) an implied warranty of fitness for a particular purpose.
• C) an implied warranty of merchantability.
• D) none of the choices.

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Definitions:

Margin Of Safety

The difference between actual or expected sales and the breakeven sales, indicating how much sales can decrease before a company incurs a loss.

Volume Of Sales

The total number of goods or services sold within a specific time frame, measuring the output of a business' activities.

Break-even Point

The break-even point is the level of production or sales at which a business's total revenues equal its total expenses, resulting in no net profit or loss.

Break-even Point

The point at which total revenues equal total costs, and the business makes neither a profit nor a loss.