Which of the Following Choices Do States Have Regarding Liability

question 31

Multiple Choice

Which of the following choices do states have regarding liability of third-party beneficiaries of warranties?

• A) That seller's warranties extend to the buyer's household members and guests only.
• B) That seller's warranties extend to any reasonable and foreseeable user only.
• C) That seller's warranties extend to anyone injured by the good only.
• D) That seller's warranties extend to the buyer's household members and guests, that seller's warranties extend to any reasonable and foreseeable user, and that seller's warranties extend to anyone injured by the good.
• E) That seller's warranties extend to the buyer's household members and guests and that seller's warranties extend to any reasonable and foreseeable user, but not that seller's warranties extend to anyone injured by the good.

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of goods sold by a company.

Merchandising Business

A merchandising business buys goods in their finished form for the purpose of resale without further processing, making profit through buying and selling activities.

Statement Of Stockholders' Equity

A financial document that shows the changes in the value of a company's equity over a reporting period, including shares issued, dividends, and earnings.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits or losses over a specific period, providing insights into its operational efficiency.