Implied Warranties Under the Code

question 68

Multiple Choice

Implied warranties under the Code:

• A) depend on the type of contract or sale entered into.
• B) are a result of specific language in the sales contract.
• C) continue the common law rule of caveat emptor .
• D) are intended to protect the seller rather than the buyer.

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Definitions:

Dividend Yield

A ratio, computed by dividing the annual dividends paid per share of common stock by the market price per share at a specific date, that indicates the rate of return to stockholders in terms of cash dividend distributions.

Par Value

A dollar amount assigned to each share of stock.

Unusual Items

Non-recurring or rare expenses or revenues that are not expected to happen regularly and are outside the ordinary activities of a business.

Income from Continuing Operations

The profit or loss generated from a company's regular business activities, excluding extraordinary items or discontinued operations.