Identify the Incorrect Statement About an Implied Warranty of Merchantability

question 52

Multiple Choice

Identify the incorrect statement about an implied warranty of merchantability.

• A) The notion of implied warranty applies only to new merchandise.
• B) Every retailer selling goods makes an implied warranty of merchantability.
• C) By offering the goods for sale, the retailer implies that they are fit for the ordinary purpose for which such goods are typically used.
• D) Because of the potential legal liability that accompanies an implied warranty, many retailers will expressly disclaim at the time of sale any or all implied warranties and seek to mark a product "as is."
• E) Some retailers will not be able to avoid implied warranties of merchantability.

Understand the concept of economic profits and losses in different market structures.

Recognize the factors leading to the emergence of monopolies and how they can maintain their monopoly power.

Identify the role of barriers to entry in maintaining a firm's market power.

Discuss the impact of economies of scale on market structures and firm size.

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Definitions:

Superfund

A U.S. federal government program designed to fund the cleanup of sites contaminated with hazardous substances and pollutants.

Hazardous Air Pollutants

Airborne substances that can cause serious health risks, including carcinogens and toxins, which are regulated by environmental agencies.

Clean Air Act

A comprehensive federal law in the United States that regulates air emissions from stationary and mobile sources to protect public health and the environment from air pollution.

Hazardous Air Pollutants

Substances in the air that can cause harm to the environment or health of humans.