Sellers of Goods Sometimes Attempt to Disclaim (Avoid)their Liability Under

question 43

Multiple Choice

Sellers of goods sometimes attempt to disclaim (avoid) their liability under warranties.Which type of warranty disclaimers must be written in order to be effective?

• A)Disclaimers of industrywide liabilities.
• B)Disclaimers of the warranty of fitness for a particular purpose.
• C)Disclaimers of the warranty of the Magnuson-Moss Act.
• D)Disclaimers of the warranty of strict liability.

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Definitions:

Current Liability

A company's debts or obligations that are due to be paid to creditors within one year.

Shortage Costs

Expenses incurred from not having enough inventory on hand, including lost sales, backorder processing, and dissatisfied customers.

Carrying Costs

Expenses associated with holding or storing inventory, including insurance, storage, depreciation, and opportunity costs.

Seasonal Increases

Periodic rises in business activity or demand that occur at the same time each year due to changes in season.