Which One of the Following Statements Accurately Describes the Legal

question 146

Multiple Choice

Which one of the following statements accurately describes the legal relationship between the principle of caveat emptor ("buyer beware") and the effect on a sale-of-goods contract of the Sale of Goods Act?

• A) The buyer must be particularly careful to make it an express term of the contract that he get good title to the goods.
• B) When there is a conflict between the principle of caveat emptor and the provisions of the Act, the principle prevails over the Act.
• C) Because caveat emptor applies to the quality of goods, the buyer's only protection is to examine them carefully and only accept them if he finds them to his liking.
• D) The Act provides a number of implied contractual terms to supplement those expressed in the contract, and these implied terms override the principle of caveat emptor.
• E) The sale of goods provisions with respect to fitness and quality always override a different stated intention in a contract for the sale of goods.

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Definitions:

Classified Balance Sheet

A classified balance sheet presents the assets, liabilities, and equity of a company in clearly defined categories, making it easier to understand the company's financial position.

Interperiod Tax Allocation

The process of distributing income tax expenses or benefits over different accounting periods to match taxes with the revenues they relate to.

Intraperiod Tax Allocation

The apportionment of income taxes within a financial reporting period to different components of net income and other comprehensive income.

Valuation Allowance

A contra-account used to reduce the carrying value of deferred tax assets if it is more likely than not that some portion will not be realized.