Alice Purchased a New Computer from Compu-Best,a Local Computer Store

question 48

Multiple Choice

Alice purchased a new computer from Compu-Best,a local computer store.She used the computer for a week when the computer began to malfunction.She returned it to the store,where the store manager assured her that he could repair what he called a "minor problem" in the computer.Two months had passed and Alice had already returned the computer five times for repair.Alice finally gave up and demanded her money back.Under these circumstances:

• A)Alice is not entitled to revoke her acceptance of the goods because she did not reject the goods when she first discovered the defect.
• B)Alice should be entitled to revoke her acceptance because she accepted the goods because of assurances by the seller that the nonconformity would be cured.
• C)Alice cannot revoke her acceptance because the value of the computer is impaired by the defect which causes it to malfunction.
• D)Alice cannot revoke her acceptance but she is entitled to damages for breach of warranty under the UCC.

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Definitions:

Ending Inventory

The final value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.

FIFO

First-In, First-Out, an inventory valuation method where goods first bought are the first to be sold, assuming that the oldest inventory items are sold before newer ones.

Costs

The amount of money expended or resources used in the production of goods or in providing services.

Average Cost Method

An inventory valuation method wherein the cost of goods sold and ending inventory is determined by taking the weighted average of all purchases.