Mountain Bikes, Inc

question 21

Multiple Choice

Mountain Bikes, Inc. (MBI) , and Nero enter into a contract for a sale of a mountain bike. MBI, a merchant who deals in goods of the kind sold, makes implied and express warranties in connection with the sale. The Magnuson-Moss Warranty Act attempts to prevent deception in warranties by

• A) displacing the UCC as the primary source of warranty rules.
• B) making warranties easier to understand.
• C) prohibiting disclaimers of warranties.
• D) requiring sellers to give written warranties for consumer goods.

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Definitions:

Equally

In a manner that is the same in quantity, size, degree, or value for all parties involved.

Salary Allowance

Additional compensation provided to employees on top of their regular salary, often for specific purposes or expenses.

Capital Balance

The amount of capital attributable to the owners or shareholders of a company, often reflected in the equity section of the balance sheet.

Net Income

The company's net income, calculated by subtracting all costs and taxes from its total earnings.