According to the Magnuson-Moss Warranty Act, Which of the Following

question 31

Multiple Choice

According to the Magnuson-Moss Warranty Act, which of the following statements is true?

• A) The law requires manufacturers and sellers to give written warranties.
• B) The law replaced UCC warranty law.
• C) If a written warranty is given by a manufacturer, the implied warranties of merchantability and fitness for a purpose cannot be eliminated.
• D) Does not differentiate between a full warranty and a limited warranty.

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Definitions:

LIFO Retail Inventory Method

An accounting technique that values inventory on the assumption that the last items placed in inventory are sold first, specifically applied to retail settings.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.

Net Markups

The amount by which the price of a security is increased above its initial offering price to the public, after deducting any fees or commissions.

Net Markdowns

The reduction in the selling price of goods, net of any subsequent increases in price, affecting the gross margin of a retail operation.