Posted: April 29th, 2016

Explain the difference between the implied warranty of merchantability and the warranty of fitness for a particular purpose?

Question 1
Arthur and Alan decide to open a retail store and operate the business as a partnership. Needing some additional funds to get the business in operation, they ask Jayne whether she would be like to invest some funds in the business and become a limited partner. Assuming that Jayne becomes and remains a limited partner, which of the following statements concerning her status is/are correct?
A. She may be involved in management of the business, but only to a rather limited degree.
B. She will not be entitled to share in the profits of the business.
C. She will not have any personal liability for partnership debts, although it is possible that partnership losses and debts may be significant enough that she may lose the amount she invested in the business.
D. both (b) and (c)

Question 2
Most franchise contracts are contracts of adhesion.
True
False

Question 3
Explain the difference between the implied warranty of merchantability and the warranty of fitness for a particular purpose
Question 4 of 84 (worth 1 point)
If a seller discovers a buyer is insolvent, the seller:
A. must wait ten days before taking action.
B. has the right to stop delivery of any goods that are being shipped to the buyer.
C. has the right to stop delivery of any goods that are being shipped to the buyer so long as they have not already been entrusted to a carrier.
D. none of the above.