Which One of the Following Statements Accurately Describes the Legal

question 118

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 those implied terms override the principle of caveat emptor, when in conflict with it.
• 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:

Premium Bond

A bond sold at a price higher than its face value, typically because it offers interest rates higher than the current market rates.

Discount Bond

A bond sold for less than its face value, where the difference between the purchase price and the face value represents the investor's return.

Registered Form

A security that is registered in the issuing corporation's books in the name of the owner, requiring transfer through formal procedures.