Which of the Following Statements Best Describes the Law Merchant

question 24

Multiple Choice

Which of the following statements best describes the law merchant?

• A) The law merchant is a body of law designed to control trade practices.
• B) The law merchant is a body of law created by merchant guilds, part of which was incorporated into the common law.
• C) The law merchant was designed to protect consumers from unscrupulous merchants.
• D) Our laws relating to consumer protection are derived from the law merchant.
• E) The law merchant is another name for the Sale of Goods Act.

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Definitions:

Implied Service Contract

A legal agreement created by the actions, situation, or circumstances of the parties involved rather than written or spoken words.

Expense Warranty Accrual Method

An accounting practice where a company estimates the costs of warranties and records these costs as an expense when the corresponding sales are made.

Modified Cash Basis

An accounting method that combines elements of both cash and accrual accounting, recognizing revenues when they are received and expenses when they are paid, with some adjustments.

Warranty Revenue Recognition

The accounting process of recognizing revenue from warranties provided, typically over the period the warranty covers.