Manuela Purchased a Network Server from Compu-Sell

question 71

Multiple Choice

Manuela purchased a network server from Compu-Sell.After installing the server and trying to use it for several days, however, she discovered that it does not perform in the way that she expected and requires.Which of the following statements is TRUE with respect to terms under the Sale of Goods Act?

• A)If the server is not of merchantable quality, Manuela will not be able to sue if she did not inspect the server at the time of purchase and if the defect would have been discovered on the basis of a reasonable inspection.
• B)Because of the maxim caveat emptor, the parties' contract will not contain an implied term of merchantability unless the parties actually intended to include that term.
• C)Manuela will not be able to sue for a lack of merchantability unless it was reasonably clear to Compu-Sell that Manuela was relying on its expertise.
• D)The server may be of merchantable quality if Manuela purchased it as used, even if it would not be considered merchantable quality if Manuela purchased it new.
• E)The implied term of merchantability applies to the server itself, but not to its labeling and packaging.

---

Definitions:

Inelastic Demand

A situation where the demand for a good or service is relatively unresponsive to changes in price, indicated by a demand elasticity coefficient of less than one.

Elastic Demand

A situation where the demand for a product or service significantly changes in response to price adjustments.

OPEC

The Organization of the Petroleum Exporting Countries, an intergovernmental organization of 13 nations that coordinates and unifies the petroleum policies of its member countries.

Oil Exploration

The process of searching for oil and gas reserves underground or underwater, involving geophysical surveys, drilling, and other methods.