If the Salesperson for a Paint Manufacturer Promised the Purchasing

question 4

Multiple Choice

If the salesperson for a paint manufacturer promised the purchasing agent for a large chain of home repair stores that a certain brand of paint was mildew-resistant (when it was not) , the salesperson:

• A)should be liable for prosecution under the regulations of the Federal Trade Commission.
• B)should be fired because he had violated the company's code of ethics.
• C)should have given further credibility to the statement, "Let the buyer beware."
• D)violated an administrative law.
• E)created an expressed warranty.

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Definitions:

Law of Demand

A fundamental principle stating that, ceteris paribus, as the price of a good increases, the quantity demanded of that good decreases, and vice versa.

Product Price

The cost for which a single item or service is sold to consumers, which can consider production, marketing, and distribution expenses.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price.

Demand Schedule

a table that shows the quantity of a good or service that consumers are willing and able to purchase at various price points.