Which of the Following Statements Is Correct with Respect to a Contract

question 80

Multiple Choice

Which of the following statements is correct with respect to a contract for the purchase of goods?

• A) The purchaser has a claim against the manufacturer only if the goods purchased are defective.
• B) Where a breach of a warranty is involved, the obligation of the victim of the breach is ended and that person need not perform her side of the agreement.
• C) Where a breach of a condition is involved, the obligation of the victim of the breach is ended and that person need not perform her side of the agreement.
• D) The purpose of the inclusion of a warranty in a sale of goods contract is to force the seller of those goods to repair the goods if they are defective.
• E) Where a breach of a condition is involved, the contract is still in force and the victim of the breach must still perform her side of the agreement.

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Definitions:

Extraction Cost

The cost associated with the removal of raw materials from the earth, which can influence the price of goods.

Property Rights

Legal rights to possess, use, and dispose of assets including real property, intellectual property, and other possessions.

Resource Extraction

The process of withdrawing natural resources from the environment for human use and consumption.

Long-Run Stream

Refers to a period in which all factors of production and costs can be fully adjusted, allowing for a comprehensive analysis of operational efficiency and market dynamics.