When a Business Advertises Their Product, the Courts Generally Presume

question 34

Multiple Choice

When a business advertises their product, the courts generally presume that:

• A) The merchant did not intend to enter into contracts with purchasers of their product.
• B) The merchant did not intend to immediately create legal relations with viewers of the advertisement.
• C) The merchant intended any contract with a purchaser to be legally binding.
• D) The merchant intended their statements to be legally binding.

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Definitions:

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the ownership interest of shareholders or owners in a company.

Adjusting Journal Entry

A type of journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.

Supplies Expense

Costs associated with consumable items used during the operation of a business, such as office supplies or manufacturing materials.

Inventory

Materials and goods a business holds for the ultimate goal of resale or processing in the manufacturing process.