Which of the Following Was the Result in the Case

question 10

Multiple Choice

Which of the following was the result in the case in the book involving Tempur-Pedic,the manufacturer of mattresses,when Tempur-Pedic sought to stop the sale of mattresses that Tempur-Pedic has donated to a charity for victims of Hurricane Katrina and attempted to recover mattresses sold by the charity involved?

• A) That the charity had void title under the UCC and could not transfer good title, and that Tempur-Pedic could recover all the mattresses both from the charity and from third-party purchasers.
• B) That the UCC did not apply because a charity was involved and that Tempur-Pedic was entitled to a temporary restraining order pending trial because of the likelihood that it would prevail based on fraudulent transactions.
• C) That under the UCC, Tempur-Pedic was entitled to a temporary restraining order because of the likelihood that it could show at trial that mattresses were not sold to a good-faith purchaser.
• D) That under the UCC, Tempur-Pedic would lose because the mattresses were sold to a good-faith purchaser for value.
• E) That the UCC did not apply because a charity was involved and that Tempur-Pedic would lose because movable goods were involved.

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Definitions:

FICA-Social Security

The portion of the Federal Insurance Contributions Act tax that funds the Social Security program, providing benefits for retirees and disabled individuals.

FICA-Medicare

A federal tax in the United States deducted from employees' paychecks to fund the Medicare program, which provides health coverage to eligible elderly and disabled individuals.

Employee Federal Income Taxes

Taxes withheld from employees' salaries by employers to pay to the federal government.

Warranty Liability

A financial obligation representing the cost a company anticipates for repairing or replacing defective products during a warranty period.