Ida Intentionally Mislabels Her Product in Order to Increase Sales

question 27

Multiple Choice

Ida intentionally mislabels her product in order to increase sales.Jay,a consumer,buys Ida's product.In using it,Jay suffers an injury.To recover for the injury on the basis of the misrepresentation,Jay must

• A)assume the risk of the misrepresentation.
• B)ignore the misrepresentation.
• C)not be influenced by the misrepresentation .
• D)rely on the misrepresentation.

---

Definitions:

Finished Goods Inventory

Finished goods inventory consists of items that have completed the manufacturing process and are ready for sale.

Raw Materials Inventory

The stock of basic materials that are used in the production process but have not yet been processed.

Raw Material Purchases

The cost associated with acquiring raw materials needed for production.

Credit Sales

Credit sales are transactions where the customer purchases goods or services on account, paying at a future date rather than at the time of purchase.