Tu-thumbs buys a used paint sprayer from the local paint store. The sprayer had a large sign on it which said "AS IS." The dealer made no promises or statements concerning the performance of the paint sprayer. When Tu-thumbs attempts to spray paint his house, the trigger on the sprayer sticks in the "on" position and before Tu-thumbs can pull the electrical cord to cut the power, paint is sprayed
all over his prize Borzoi dog that is scheduled to be shown in a dog show the next day. Tu-thumbs sues the dealership. Who wins?
A) Dealer wins; there were no express warranties and all implied warranties have been successfully disclaimed.
B) Tu-thumbs wins; he can recover on the basis of express warranties.
C) Tu-thumbs wins; he can recover on the basis of the implied warranty of merchantability because the word "merchantability" was not used in the disclaimer.
D) Dealer wins; even though there were implied warranties, the damage to the dog could not have been foreseen.
A
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Indicate whether the statement is true or false
Interview evaluation refers to:
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Mapleton Company is considering an investment in a machine that would reduce annual labor costs by $30,000 . The machine has an expected life of 10 years with no salvage value. The machine would be depreciated according to the straight-line method over its useful life. The company's marginal tax rate is 30 percent. Refer to Mapleton Company. Assume that the company will invest in the machine if
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