Why Is the Placing of an Order with a Supplier

question 14

Multiple Choice

Why is the placing of an order with a supplier not regarded as a transaction?

• A) Because the computer software cannot record it.
• B) Because the entity may cancel the order.
• C) Because an exchange between the entity and the supplier has not yet occurred.
• D) The placing of an order is regarded as a transaction.

Understand the concept and implications of express warranties in sales and lease contracts.

Comprehend the legal requirements and effects of the Magnuson-Moss Act on warranties.

Recognize situations where the UCC assumes the seller has valid title and the implications on warranties of title.

Identify and differentiate between express and implied warranties and their effects on sales and lease agreements.

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Definitions:

Substantial Interest

A significant stake or investment in a matter or entity, indicating a strong concern or potential influence on decisions.

Original Obligor

The party originally obligated to repay a debt or fulfill a contractual obligation before any assignments or transfers of the obligation.

Delegable Duty

A responsibility or duty that can be transferred or assigned from one party to another, often seen in contexts of employment or contractual agreements.

Incidental Beneficiary

A third party who benefits from a contract between two other parties, although the benefit was not the reason the contract was formed.