Which Statement Is True Regarding the Implied Warranty of Fitness

question 4

Multiple Choice

Which statement is true regarding the implied warranty of fitness for a particular purpose?

• A)It applies in every sales transaction involving a merchant.
• B)It applies in every case in which an implied warranty of merchantability is found.
• C)It may be applied to sellers who are not merchants.
• D)It is a common law doctrine not followed by the UCC which recognizes only the implied warranty of merchantability.
• E)It applies in every case in which an express warranty is found.

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Definitions:

Yield to Maturity

The complete yield expected from a bond assuming it is retained until it matures.

Yield to Call

The rate of return anticipated on a bond if it is held until the call date, which is before the bond's maturity, including all interest payments and the call price.

Yield to Maturity

The total return anticipated on a bond if it is held until the date of maturity, accounting for interest payments and capital gains.

Call Premium

The amount by which the price of a call option exceeds its intrinsic value, reflecting the cost to buy the option.