When a Buyer Makes a Purchase Without Relying on the Seller's

question 16

True/False

When a buyer makes a purchase without relying on the seller's skill and judgment, no warranty of fitness for a particular purpose exists.

---

Definitions:

Futures Contracts

Standardized legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Downside Risk

The potential for loss in an investment or the financial risk associated with the lower-than-expected return.

Upside Potential

The potential for the price of an asset to rise, often based on various factors including company performance, market conditions, or economic indicators.

Predictable Cash Flows

Cash flows that can be reasonably forecasted or estimated based on historical data and expected future events, providing a measure of financial stability.