What Was the Result in the "Case Opener" in Which

question 70

Multiple Choice

What was the result in the "Case Opener" in which a purchaser of a puppy from a person who regularly sold puppies sued the seller for veterinarian bills after the puppy was found to be in poor health?

• A)The court found that the puppy was not a good covered under the UCC,and the plaintiff was denied recovery.
• B)The court awarded the plaintiff the veterinary bills finding that the UCC applied and that the seller breached the warranty of merchantability.
• C)The court refused any recovery to the plaintiff on the basis that the seller was not considered a merchant under the UCC and that no implied warranties were made.
• D)The buyer in essence had no remedy because the court ruled that the plaintiff's only remedy,which the plaintiff was unwilling to do,was return of the puppy for a refund.
• E)The court allowed the buyer to recover the contract price only,not veterinarian bills.

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Definitions:

Variable Selling Expenses

Costs that fluctuate with sales volume, such as commissions and shipping charges, directly associated with the selling of products.

Fixed Production Costs

Costs that do not change with the level of production output, such as rent, salaries, and equipment depreciation.

Variable Costing

A costing method that includes only variable production costs in the cost of goods sold and treats fixed manufacturing overhead as a period expense.

Absorption Costing

A method of accounting that encompasses the total manufacturing expenses, including direct materials, direct labor, along with both variable and fixed overhead costs, as part of a product's cost.