What Is the UCC Statute of Limitations for Warranties in Connection

question 22

Multiple Choice

What is the UCC Statute of Limitations for warranties in connection with the sale of goods?

• A)1 year from the date of the sale.
• B)2 years from the date of the sale.
• C)3 years from the date of the sale.
• D)4 years from the date of the sale.
• E)4 years from the date of the sale unless the parties agree to reduce the period to not less than 1 year.

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Definitions:

Retained Earnings

Accumulated net income not distributed to shareholders and reinvested in the company.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made periodically, usually at the end of a financial reporting period, as opposed to continuously.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material, labor, and overhead expenses.

Beginning Inventory

The worth of merchandise on hand ready to be sold at the beginning of a financial period.