Which of the Following Is Required by the Magnuson-Moss Act

question 72

Multiple Choice

Which of the following is required by the Magnuson-Moss Act when the seller issues a written warranty for a consumer good?

• A)The seller must indicate whether that warranty is a full warranty or a limited warranty.
• B)The seller must provide a full warranty,and the seller must indicate full warranty protection in its written contract with the buyer.
• C)The seller must provide an express warranty and a warranty of merchantability,and the seller must indicate the express warranty and the warranty of merchantability in its written contract with the buyer.
• D)The seller must provide a warranty of trade usage,and the seller must indicate the warranty of trade usage in its written contract with the buyer.
• E)The seller must provide a warranty of trade usage and a warranty of merchantability,and the seller must indicate the warranty of trade usage and the warranty of merchantability in its written contract with the buyer.

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Definitions:

Consumer Savings

Refers to the portion of disposable income that is not spent on consumption but is saved by individuals, often placed in savings accounts or invested.

Business Investment

Expenditures made by businesses to purchase capital goods or services intended to increase their productive capacity or efficiency.

Financial Instruments

Contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial Markets

Platforms or systems that facilitate the buying, selling, and trading of financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand.