A Commitment,such as a Contract to Pay a Baseball Player

question 42

True/False

A commitment,such as a contract to pay a baseball player $5,000,000 a year for five years,should be listed as a long-term liability.

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Definitions:

Implied Warranty of Fitness

A legal doctrine that suggests that when a seller knows the specific purpose for which an item is purchased, the item is guaranteed to be fit for that particular purpose.

Product Liability Theories

Legal doctrines that hold manufacturers, distributors, suppliers, retailers, and others who make products available to the public responsible for the injuries those products cause.

Load-Carrying Capacity

The maximum weight that a structure or vehicle can safely carry or support.

Implied Warranty

A legal concept that guarantees certain conditions or features are present in a product or service, even if not explicitly stated.