Which of the Following Is an Accurate Statement Regarding Common

question 97

Multiple Choice

Which of the following is an accurate statement regarding common law and express warranties?

• A)Although the common law does not use the term express warranty,the concept and its application do exist in the common law.
• B)The common law specifically incorporates and defines the term express warranty
• C)To use common law language,an express warranty is a non-material term of the sale or lease contract.
• D)To use common law language,an express warranty is an equitable requirement of any sale or lease contract.
• E)To use common law language,an express warranty must be incorporated in a written sale or lease contract in order to be enforceable.

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Definitions:

Patent Account

An account on the balance sheet that represents the cost of purchasing patents or the expenses incurred in securing patents.

Successful Product

A product that achieves significant sales, profitability, and/or market share goals.

Recognized

The formal acknowledgement in accounting when an item is recorded and reflected in the financial statements.

Goodwill

Represents the excess value paid for a company over its fair market value, often related to intangible assets like brand reputation or customer relationships.