How Did the Use of an Implied Warranty of Merchantability

question 27

Multiple Choice

How did the use of an implied warranty of merchantability solve a set of problems with the contract law approach to product liability?

• A)Consumers do not need complex contracts in order to protect themselves from all possible harms that products might cause.
• B)The burden of proof has shifted from producers to consumers as consumers are allowed to assume that products are safe for ordinary use.
• C)It has forced businesses to issue a disclaimer of liability and offer limited warranties to limit its liability.
• D)Buyers have the responsibility to look out for their own interests and protect their own safety when buying a product.

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Definitions:

Price Ceiling

A government-imposed limit on how high a price is charged for a product, aimed at preventing prices from becoming excessively high.

Inefficiency

The state of not achieving maximum productivity or economic benefit, where resources are not used in the most effective way.

Market

Any structured system or venue where parties engage in exchange of goods, services, or information.

Price Ceiling

A legally established maximum price that can be charged for a good or service, intended to protect consumers from high prices.