Watercourse Pipe Company Includes in Its Contracts a Provision That

question 16

Multiple Choice

Watercourse Pipe Company includes in its contracts a provision that reads, in large red letters, "There are no warranties that extend beyond the description on the face hereof." This disclaimer negates

• A) the implied warranty of fitness for a particular purpose.
• B) the implied warranty of merchantability.
• C) the implied warranty of title.
• D) none of the choices.

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Definitions:

Securities

Financial instruments representing ownership (stocks), a debt agreement (bonds), or rights to ownership (derivatives).

Asset

Any resource owned or controlled by a business or an individual with the expectation that it will provide future economic benefits.

Articles Of Incorporation

Legal documents filed with a government body to legally document the creation of a corporation.

Indenture Contract

A formal legal agreement, bond, or document specifying the terms and conditions between parties, often used in finance for bonds or loans.