Language That Attempts to Dismiss an Express Warranty Is ____

question 164

Multiple Choice

Language that attempts to dismiss an express warranty is ____ when the disclaimer is inconsistent with the warranty.

• A) effective
• B) effective in some states, but not others
• C) not effective
• D) allowed under certain circumstances
• E) illegal and immoral

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Definitions:

Operating Capacity

The maximum output that a company can produce under normal conditions.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that are financed by shareholder's equity.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its financial leverage or debt proportion.

Dividend Payout Ratio

The proportion of net income a firm pays out to its shareholders in the form of dividends.