Which of the Following Statements Is True Regarding the Warranty

question 26

Multiple Choice

Which of the following statements is true regarding the warranty of merchantability?

• A) A tortfeasor then he/she can use the warranty of merchantability as a defense against a product liability case.
• B) It indicates that the goods will be of at least average quality for such goods.
• C) It indicates that the goods will be fit for the particular purpose for which they are sold if the buyer tells the seller the purpose and the seller provides the goods in response.
• D) It is an express warranty.

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Definitions:

Revenue Recognition

The accounting principle detailing the specific conditions under which revenue is recognized and recorded.

Reasonably Estimated

A concept that pertains to the feasibility of approximating a figure or amount in the absence of precise or complete information, often used in accrual accounting.

Bundled Sales

A marketing strategy where multiple products or services are packaged together and sold at a single price.

Lump-sum Contract

A type of contract in which all work is agreed to be completed for a single, fixed price, regardless of the actual costs incurred.