Amir Bought a Television Set from Corbel Electronics for $250

question 10

Multiple Choice

Amir bought a television set from Corbel Electronics for $250. Corbel Electronics delivered a warranty of six years for any manufacturing defect in the product. After three years of use, the television set caught fire because of a manufacturing defect. The fire also damaged other goods in Amir's house. Which of the following statements is most accurate regarding this scenario?

• A) Amir cannot recover damages for personal injuries under the warranty from Corbel Electronics.
• B) Amir cannot recover damages for loss in value of the television set.
• C) Amir can claim consequential damages for a breach of warranty resulting in injury to the property.
• D) Amir's right to recover damages is barred by the Uniform Commercial Code's statute of limitations.

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Definitions:

Variable Manufacturing

Costs in manufacturing that change in proportion to the volume of production, such as materials and labor.

Materials Price Variance

The difference between the actual cost of materials used in production and the budgeted cost of materials, based on standard prices and actual quantities purchased.

Variable Manufacturing

Costs in manufacturing that vary directly with the level of production, such as raw materials and direct labor costs.

Variable Overhead Rate

The rate at which variable overhead costs are allocated to each unit of production, based on a certain activity level.