Which of the Following Is True Regarding Whether a Seller

question 37

Multiple Choice

Which of the following is true regarding whether a seller must provide a warranty under the Magnuson-Moss Act?

• A) A seller must provide an express, full warranty.
• B) A seller must provide an implied, full warranty.
• C) A seller must provide at least an express, limited warranty.
• D) A seller must provide at least an implied, limited warranty.
• E) The act does not require that the seller provide any warranties.

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Definitions:

Financial Lease

A financial lease is a lease in which the lessee has substantially all the risks and rewards incidental to ownership of the leased asset, often with an option to purchase the asset at the end of the lease term.

Capital Lease

A lease classified as a purchase by the lessee, obligating them to record the leased asset as an owned asset in their financial statements.

Partially Amortized

A loan repayment plan where the total sum borrowed is not fully paid off by the end of the loan term, leaving a lump sum due as a "balloon payment."

Net Advantage

The quantitative benefit or gain derived from a particular decision or action, after considering all related costs and disadvantages.