Fact Pattern 23-A1

question 80

Multiple Choice

Fact Pattern 23-A1
Bret, a representative of Concrete Products, Inc. assures Dependable Construction Company that Concrete's cement will not crack within a certain range of temperatures. DCC uses the product. When cracks develop within the stated temperature range, DCC files a suit against Concrete.
-Refer to Fact Pattern 23-A1. Suppose that the court rules against Concrete. The manufacturer might have avoided that result by

• A) making its cement fit for its particular purpose.
• B) making its cement merchantable for its intended use.
• C) not allowing Bret to express an opinion.
• D) not permitting Bret to make an express warranty.

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Definitions:

Work in Process

Inventory that includes goods partially completed in the manufacturing process but not yet ready for sale.

Retained Earnings

The portion of net earnings not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.

Net Income Column

A financial statement element that shows the difference between total revenues and total expenses of a company.

Balance Sheet

A report detailing a company's assets, liabilities, and owners' equity at a certain moment.