Hot Toaster

question 65

Multiple Choice

Hot Toaster.Rebecca bought a toaster from Super Store and brought it home.A friend of hers,Greg,was at her house making toast.The toaster malfunctioned and shocked Greg,resulting in a small burn to his hand requiring medical attention.At a garage sale,Rebecca also purchased a blender from a friend,Samantha.When she paid for the blender,Rebecca said that it would be great for making smoothies.Samantha said nothing and just smiled while taking Rebecca's money.Unfortunately,the blender was not powerful enough to make smoothies.Which of the following is true regarding whether Samantha made an implied warranty of fitness for a particular purpose to Rebecca that the blender would make smoothies?

• A)Samantha did not make an implied warranty of fitness for a particular purpose,because there is no proof that Rebecca was relying on Samantha to make the selection.
• B)Samantha did not make an implied warranty of fitness for a particular purpose,because Samantha is not a merchant.
• C)Samantha did not make an implied warranty of fitness for a particular purpose,because there is no proof that Rebecca was relying on Samantha to make the selection and since Samantha is not a merchant.
• D)Samantha made an implied warranty of fitness for a particular purpose to Rebecca that the blender would make smoothies,because she had a duty to tell Samantha otherwise.
• E)Regardless of whether she said anything or not,Samantha made an implied warranty of fitness for a particular purpose to Rebecca that the blender would make smoothies because she sold the blender.

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Definitions:

Quantity Variances

The difference between the expected amount of inputs needed for production and the actual amount used, often analyzed in cost accounting to assess efficiency.

Standard Costs

Predetermined or estimated costs of manufacturing, selling, or performing a service, used as targets and benchmarks against actual costs.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, based on the standard rate and actual hours worked.

Direct Labor Time Variance

A measure used in cost accounting to analyze the difference between actual hours worked and the standard hours expected for a task.