Under the Magnuson-Moss Act, What Is the Effect of a Full

question 73

Multiple Choice

Under the Magnuson-Moss Act, what is the effect of a full warranty?

• A) It means that if the good fails or is defective, the good or its defective part will be replaced; and if replacement cannot be timely effected, the buyer has the right to a refund or a full replacement.
• B) It means only that the good or its defective part will be repaired. The buyer has no other remedy.
• C) It means that the good or its defective part will be repaired or replaced if it cannot be repaired. The buyer has no other remedy.
• D) It means that the buyer must be immediately refunded the full purchase price.
• E) It means that the buyer has the option of an immediate refund of the full purchase price or repair of the good.

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Definitions:

Normative Statement

An opinion or value judgment about what is desirable or how things ought to be, as opposed to what actually is.

Unemployment Benefits

Payments made by a government or authorized body to unemployed individuals, aiming to provide financial support during joblessness.

Outsourcing

The practice of hiring third parties to conduct services or produce goods that were traditionally performed by the company's own staff.

Positive Statement

An objective statement based on facts that can be tested and verified.