Monroe Sold Computers

question 70

Multiple Choice

Monroe sold computers. On the purchase of a new StarSystem computer the buyer signed the written contract that contained the following clause: "The seller is not liable for any breach of condition or warranty express or implied in this contract." The buyer was a businessman who intended to use the machine in his business for a while and then resell it. The machine was used properly but didn't operate well, and within one week it would not work at all. Monroe refused to take back the machine or to refund any money by relying on the exemption clause. Which of the following would be the buyer's best argument for avoiding the effect of the exemption clause in this case?

• A) Such clauses are prohibited under contract law and are therefore void.
• B) The buyer had no notice of the clause; therefore, it is not a term of the contract.
• C) On a narrow interpretation of the words used in the exemption clause, they do not cover his complaint.
• D) There is a fundamental breach of contract.
• E) There is a breach of a non-essential term of the contract.

Recognize the significance of reserve requirements on banking operations.

Comprehend the effects of open market operations on the economy.

Discern the Federal Reserve's role in regulating the banking sector and its impact on the economy.

Understand the relationship between bond prices, interest rates, and monetary policy actions.

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Definitions:

Par Value

The face value or nominal value of a security as stated by the issuer, often used in reference to stocks and bonds.

Federal Agency

A government organization established to perform a specific function or range of functions at the national level.

Major Stock Exchanges

Platforms where stocks and other securities are bought and sold, including the New York Stock Exchange and Nasdaq.

Stockholders' Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership interest of shareholders.