If a Seller, at the Time of Making a Contract

question 4

Multiple Choice

If a seller, at the time of making a contract, knows or has reason to know any particular purpose for which the goods are required and that the buyer is relying on the seller's skill or judgment in selecting or furnishing suitable goods, there is an implied warranty of:

• A) good faith.
• B) reputation.
• C) merchantability.
• D) fitness of purpose.

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Definitions:

Demand for Insurance

The desire or willingness of individuals or entities to pay for protection against financial losses or potential risks.

Mutual Gains

Benefits or advantages that are shared among parties in a transaction or negotiation, leading to a situation where all involved parties end up better off.

Insurance Industry

A sector of the financial services market that provides risk management through contractually agreed-upon financial protection against losses.

Capital at Risk

The amount of capital that could be lost in an investment due to risk factors.