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:

Issuance Costs

Expenses related to the distribution and sale of securities, including legal, accounting, and underwriter fees.

Effective Interest Amortization

Effective Interest Amortization is a method of calculating the amortization of a bond's premium or discount, taking into account the time value of money.