Ellen Informs the Sales Clerk of an Electronics Store That

question 12

Multiple Choice

Ellen informs the sales clerk of an electronics store that she needs washing machines capable of heavy-duty use.The sales clerk sells a machine to Ellen withholding the fact that it is not heavy-duty.The machine break down after the first month.Which of the following is accurate in this scenario?

• A)Ellen can sue the store for breach of implied warranty of merchantability.
• B)Ellen can sue the store for breach of implied warranty of fitness for a particular purpose.
• C)Ellen cannot sue the store as there is no breach of warranty because the clerk made no affirmative statement or promise about the machines.
• D)Ellen cannot sue the store as there is no breach of warranty because the clerk has no responsibility for the way the machine is used.

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Definitions:

Debt-To-Equity Ratio

A financial benchmark that shows the ratio between debt and shareholders' equity in asset financing.

Prepaying Bonds

The action of repaying the principal of a bond before its maturity date, often as a way to manage debt or save on interest costs.

Outstanding Bonds

Bonds issued by an entity that are currently not redeemed and are in the hands of investors.

Semiannual Interest

Interest that is calculated and paid twice a year on investments or loans.