Len Is a Salesman at Warren Appliances

question 49

Multiple Choice

Len is a salesman at Warren Appliances.He tells Helen, a customer, that the washing machine she is considering is A-1 quality.She buys it.A week later, when using the washing machine, a part on the machine flies out at her, injuring her eye.

• A)Len's statement that the machine was A-1 quality was an express warranty.
• B)Len's statement that the machine was A-1 quality created a warranty of merchantability.
• C)Helen was justified in relying on Len's statement that the machine was A-1 quality.
• D)Len's statement that the machine was A-1 quality was puffing.

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Definitions:

Constant-Sum Game

In a constant-sum game, the total payoff to all players remains the same, regardless of the strategies players use, meaning one player's gain is precisely equal to another's loss.

Auto Sales

The activities associated with selling automobiles, including both new and used vehicles.

Producer Surplus

The difference between what producers are willing to sell a good for and the market price they actually receive.

Negotiated Price

The final price agreed upon by the buyer and seller after discussions or bargaining, reflecting both parties' interests.