Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Accounting Basics Expert

Monica Natowicz recently bought a used car from Uncle Buck's Car Yard. After owning it for only one week, the car's engine failed, and her mechanic told her that she would have to change the engine. Monica complained to the owner of Uncle Buck's Car Yard, Buck Buckley, that she had been tricked into buying a car with a defective engine. Specifically, Monica referenced the sign Buck had placed on the 10-year old Ford Escape that stated "the most reliable old car around," and "with an engine that lasts." Uncle Buck, on the other hand, told Monica that the car engine's failing was likely a result of Monica's negligent driving, and that he would not refund any money. Consequently, Monica took Buck to court, arguing that Uncle Buck had used deceptive advertising in selling her a used car.

The court agreed with Monica, concluding the two claims were material misrepresentations that would likely deceive a reasonable consumer. But what if the facts of the case were different? Select each set of facts below that could change the outcome of the case.

A- The car Buck sold to Monica did not have a buyer's guide label attached to it at the time of the transaction.

B- The court opined that the two statements Buck had used to advertise the Ford Escape was a misrepresentation of the car's quality and potentially misleading. However, the court concluded that a reasonable consumer would know to not trust, and subsequently be misled, by such statements in making a purchasing decision.

C- Uncle Buck included a label on the car that suggested that a buyer obtain an inspection for the Ford Escape before purchasing the car.

D- Instead of stating the two quotations that Monica references, Uncle Buck's sign stated only the following: "the best car to have ever existed."

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91790299

Have any Question?


Related Questions in Accounting Basics

Question - effective financial reporting depends on sound

Question - Effective financial reporting depends on sound ethical behavior. Financial scandals in accounting and the businesses world have resulted in legislation to ensure adequate disclosures and honesty and integrity ...

Question - a machine is purchased january 1 at a cost of

Question - A machine is purchased January 1 at a cost of $56,290. It is expected to produce 129,000 units and have a salvage value of $3,400 at the end of its useful life. Units produced are as follows: Year 1 10,400 Yea ...

Question - journal entries for job order costingcycle

Question - Journal entries for job order costing Cycle Specialists manufactures goods on a job order basis. Durin the month of June, three jobs were started in process. (There was no work in process at the beginning of t ...

Question - post the following transactions into the

Question - Post the following transactions into the appropriate T accounts. Transactions: 1. Purchased office supplies for $6,000 in cash. 2. Delivered monthly statements; collected fee income of $52,000. 3. Paid the cur ...

Question - the allowance for doubtful debts account had a

Question - The allowance for doubtful debts account had a balance of $2200 before bad debts of $1400 were written off and the allowance was adjusted to 10% of the accounts receivable balance of $20 000. Compute the new a ...

Question - on july 1 2016 alpha company purchased for 70000

Question - On July 1, 2016, Alpha Company purchased for $70,000, equipment having a service life of eight years and an estimated residual value of $10,000. Alpha has recorded depreciation of the equipment using the strai ...

Question - in 2018 aman gave his church 50000 in cash he

Question - In 2018 Aman gave his church $50,000 in cash. He also gave his alma mater university another $70,000 of appreciated stock (basis of $18,000). Aman's AGI is $200,000. What is Aman's charitable deduction for 201 ...

Question suppose that france and germany both have 100

Question: Suppose that France and Germany both have 100 units each of capital and labor, and that they share the same CRS technology with which they produce wine and cheese. However, tastes differ in the two countries: c ...

Assignment - you have been recently employed as an

Assignment - You have been recently employed as an accountant for the Platinum Manufacturing Group. The CEO, Ms James, has tasked you with reviewing their system for the purchase, receipt, storage and issuance of raw mat ...

Question - prepare journal entries the town records

Question - Prepare journal entries. The Town records encumbrances only for its Supplies appropriation. 1) Lancing adopted the following budget for the year: Revenues: Property taxes $275,000 Licenses and fees $35,000 App ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As