Eric Is Looking for a New Car and Finds a Sports

question 46

Essay

Eric is looking for a new car and finds a sports utility vehicle (SUV) that he likes, but he wants a particular color. The salesperson states that she can order an SUV that will be exactly like the floor model but in the preferred color. The salesperson gives Eric a brochure about the SUV and says that she can order an SUV just as that model is described in the brochure. Relying on this information, Eric orders the SUV.   Explain what express and implied warranties are part of this contract.

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Definitions:

Money Supply

The sum of all financial resources in the form of cash, coins, and bank account balances present in an economy at a certain time.

Tight Money Policy

A monetary policy strategy used by central banks to slow economic growth by increasing interest rates and reducing the supply of money.

Government Bonds

Fixed-income securities issued by a government to support government spending, typically offering a regular interest payment and repayment of the principal at maturity.

Easy Money

A monetary policy stance characterized by low interest rates and high availability of credit to encourage economic growth.