Which of the Following Is Correct About the Lemon Law

question 52

Multiple Choice

Which of the following is correct about the lemon law?

• A) It applies when a vehicle has been out of service for 60 days.
• B) It was enacted in 45 of the 50 states.
• C) It requires a refund for the vehicle after the owner has made repeated attempts to obtain financing.
• D) It applies to vehicles that have been serviced four times to correct the same problem in the first 12,000 miles.
• E) It applies to both new and used vehicle purchases.

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Definitions:

Retained Earnings

The portion of a company's profit that is held or retained and not paid out as dividends to shareholders, often used for reinvestment in the business or to pay off debt.

Paid-In Capital

The total amount of money that shareholders have invested in the company by purchasing shares directly from the company.

Common Stock

Equity ownership in a corporation, where holders often have voting rights but are last in line in claims to assets and income.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock.