Oral Warranties Made Before the Execution of a Written Agreement

question 53

True/False

Oral warranties made before the execution of a written agreement containing an express disclaimer are subject to the parol evidence rule.

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Definitions:

Sales Returns and Allowances

A reduction in sales revenue due to returned goods or allowances made for damaged or unsatisfactory products.

Freight-In

Costs associated with transporting raw materials or goods into a company from suppliers, considered part of the cost of purchasing inventory.

Net Purchases

The total cost of purchases made by a company after deducting any returns, allowances, and discounts.

Cost of Goods Sold

The immediate expenses linked to manufacturing goods for sale within a business, encompassing both materials and workforce costs.