A Merchandising Company

question 4

Multiple Choice

A merchandising company:

• A) Earns net income by buying and selling merchandise.
• B) Receives fees only in exchange for services.
• C) Earns profit from commissions only.
• D) Earns profit from fares only.
• E) Buys products from consumers.

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Definitions:

Express Warranty

An explicit guarantee made by a seller about the condition and quality of a product, forming part of the contract between buyer and seller.

Implied Warranty

A legal theory in commerce that holds sellers responsible for ensuring the products sold are suitable for their intended use, even if not explicitly stated.

Puffing

Exaggerated or boastful statements about a product or service that are subjective and not meant to be taken literally.

Restatement Of Contracts

A comprehensive set of principles regarding contract law drafted by legal scholars to help clarify and unify the law of contracts.