Which of the Following Statements Characterizes an Implied Warranty of Fitness

question 57

Multiple Choice

Which of the following statements characterizes an implied warranty of fitness?

• A)It is covered under UCC section 402A.
• B)The seller relies on the buyer's skill or judgment in making a purchase.
• C)Any seller,merchant or nonmerchant,may make this implied warranty.
• D)It has the same tests as those for implied warranty of merchantability.

---

Definitions:

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Expenses that change in proportion to the activity or production level of a business.

Output

The total amount of goods or services produced by a company or economy in a given period.