A Seller's Form Clearly States No Warranty Is Included

question 29

Multiple Choice

A seller's form clearly states no warranty is included.The buyer's form states that the seller warrants the goods for one year.In this case

• A)no contract can be created.
• B)the warranty term is a "different term," and the majority of states hold that a contract can be formed but the contradictory terms cancel each other out.
• C)the warranty term is an "additional term" that becomes part of the contract in most states.
• D)the warranty term is a "different term," which in most states becomes part of the contract unless the seller promptly objects.

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Definitions:

Identifiable Intangible Assets

Non-physical assets owned by a business that can be separately identified and valued, such as patents, trademarks, copyrights, and customer lists.

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its net identifiable assets, reflecting attributes like brand, customer base, and employee relations.

Impairment

A decrease in the recoverable value of an asset below its carrying amount on the balance sheet, necessitating a write-down of its value.

Fair Value

An estimate of the price at which an asset or liability would trade in a fair transaction between willing parties.