The Implied Term Regarding Fitness for Intended Purpose

question 68

Multiple Choice

The implied term regarding fitness for intended purpose

• A)applies any time that the buyer relied upon the seller's skill or judgment.
• B)applies only if the buyer relied upon the seller's skill or judgment and the seller knew of that reliance.
• C)applies only if the buyer purchased the goods for a business purpose.
• D)never applies if the buyer mentions the trade name for a particular type of goods.
• E)cannot be reduced or eliminated by a limitation clause or an exclusion clause.

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Definitions:

Psychic Costs

Non-monetary costs related to emotional stress or mental effort involved in undertaking an activity or making a decision.

Fire Protection Program

encompasses the policies, practices, and tools aimed at preventing, mitigating, and responding to fires.

Expected Loss

The anticipated amount of loss or damage assessed in terms of its probability and the severity of the loss.

Insurance Premium

The amount that individuals or organizations pay for an insurance policy to cover risk.