Deanna Has Created a Company,Text Styles,which Sells a Single Product

question 48

Multiple Choice

Deanna has created a company,Text Styles,which sells a single product - gloves that do not have to be removed when operating a smartphone.The supplier of the gloves lists her on their website as an "authorized seller" of the gloves.If a customer had a complaint about gloves purchased,which of the following would be true?

• A)They could sue the supplier because Deanna is acting as their agent.
• B)They could sue the supplier because Deanna is acting as a distributor.
• C)They can sue both Deanna and the supplier because of vicarious liability.
• D)They can sue the supplier because Deanna is a franchisee.
• E)They could sue Deanna if the complaint was due to a tort she committed.

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Definitions:

Receivables Balance

The cumulative sum of funds due to a business from its clients for products or services provided on a credit basis.

Accounts Receivable Period

The typical duration in days that a company requires to receive payment following a sale.

Sales

The activities involved in selling goods or services directly to consumers or end-users.