In Order for the Implied Warranty of Merchantability to Be

question 8

Multiple Choice

In order for the implied warranty of merchantability to be applied,which of the following is required?

• A)Both parties must be merchants and a sale,not a lease,must be involved.
• B)The seller must be a merchant and a sale,not a lease,must be involved.
• C)The seller must be a merchant,and either a sale or lease must be involved.
• D)Both parties must be merchants,and either a sale or lease must be involved.
• E)The seller must be a merchant,goods valued at over $500 must be involved,and either a sale or lease must be involved.

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Definitions:

CFCs

Chlorofluorocarbons, synthetic compounds used in air conditioning, refrigeration, and as aerosol propellants, known to deplete the ozone layer.

Fixed Asset Turnover Ratio

A financial metric that measures how efficiently a company is using its fixed assets to generate sales.

Cash Ratio

A liquidity ratio that measures a company's ability to pay off its short-term liabilities with its cash and cash equivalents.

Current Liabilities

Short-term obligations that will be paid or settled within the coming year in cash, goods, other current assets, or services.