A Disclaimer or Exclusion of the Warranty of Merchantability Will

question 46

Multiple Choice

A disclaimer or exclusion of the warranty of merchantability will be invalid if:

• A) the goods cost $500 or more.
• B) the defects in the goods are obvious to all buyers.
• C) it is made at the time of the sale.
• D) it is not conspicuously set forth in a writing.

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Definitions:

Economic Activities

Actions that involve the production, distribution, and consumption of goods and services within an economy.

Asset Turnover

A financial ratio that measures the efficiency of a company at using its assets to generate sales or revenue.

Total Assets

The combined value of all assets owned by a company, including both current and non-current assets.

Trend Statements

Financial statements analyzed over several time periods to identify patterns or trends in a company's financial performance.