Universal Assembly Company Makes Espresso Machines and Sells One to Vim

question 23

Multiple Choice

Universal Assembly Company makes espresso machines and sells one to Vim through a misrepresentation on the label on which Vim relies and that results in an injury to Vim.Universal is most likely liable for

• A)a commonly known danger.
• B)fraud.
• C)privity.
• D)puffery.

---

Definitions:

Manufacturing Overhead

All indirect costs associated with the manufacturing process, such as utilities, rent, and salaries for employees not directly involved in production.

Required Production

This refers to the number of units that must be produced in a given period to meet sales demands and inventory policies.

Cash Budget

An estimation of the cash inflows and outflows for a business or individual for a specific period, highlighting the anticipated cash position.

Cash Receipts

The money a company receives from its various business activities, typically including sales, services, loans, or any transactions that bring cash into the organization.