The General Rule in Sales Is Caveat Emptor

question 53

Multiple Choice

The general rule in sales is caveat emptor.Which of the following statements about that concept is TRUE?

• A)Caveat emptor is a Latin phrase that means that a person cannot sell more than he or she actually owns.
• B)Caveat emptor is a Latin phrase that means "let the seller beware."
• C)Because of the concept of caveat emptor,the buyer normally must pay for goods as soon as they are delivered.
• D)The implied term regarding merchantability is an exception to the general rule of caveat emptor.
• E)Caveat emptor is a Latin phrase that means that,after the codification of the Sale of Goods Act,judges should resolve disputes on the basis of the statute and not on the basis of old cases.

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Definitions:

Correlations

A measure showing the extent to which two or more variables fluctuate together.

Illusory Correlation

The mistaken perception of a relationship between two events or variables that are actually unrelated.

Positively Correlated

A relationship between two variables where they move in the same direction, meaning as one variable increases, so does the other, and vice versa.

Scatterplot

A type of graph in which the values of two variables are plotted along two axes, the pattern of the resulting points revealing any correlation present.