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1. Kim is a director and officer of her family-owned apparel business. Kim decides to expand the company and buy several smaller apparel distributors. Her company is seeking to expand into niche-apparel markets that these distributors serve. She hires a team of professional to evaluate their business models and production facilities. After weighing the options and gathering all the facts, the deals go through. A few months later, the niche-apparel markets appear to not be as profitable as anticipated. A competitor also entered the market and undercut prices. Kim's company suffers losses. Under the business judgment rule, Kim is
A. immune from liability.
B. liable because she has a conflict of interest.
C. personally liable.
D. liable only to the extent of the losses.
2. James, a salesperson for the car dealership of Specialty Auto Imports, tells Anne that the car she is considering buying is "the most amazing car on the lot and one of the best used cars he has ever seen." This statement is
A. puffery.
B. an express warranty.
C. an implied warranty.
D. an implied warranty of habitability.
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