Under the Magnuson-Moss Act,what Is the Effect of a Full

question 37

Multiple Choice

Under the Magnuson-Moss Act,what is the effect of a full warranty?

• A)It means that the buyer must be immediately refunded the full purchase price.
• B)It means that the buyer has the option of an immediate refund of the full purchase price or repair of the good.
• C)It means only that the good or its defective part will be repaired.The buyer has no other remedy.
• D)It means that if the good fails or is defective,the good or its defective part will be replaced;and if replacement cannot be timely effected,the buyer has the right to a refund or a full replacement.
• E)It means that the good or its defective part will be repaired or replaced if it cannot be repaired.The buyer has no other remedy.

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Definitions:

Herfindahl Index

An economic measure of market concentration that sums the squares of the market shares of all firms within the industry.

Conglomerate Merger

A union of companies engaged in entirely different businesses, often to diversify portfolio risks and leverage managerial expertise across industries.

Antitrust Scrutiny

The examination and monitoring of companies and their practices by government agencies to ensure they do not engage in anti-competitive behavior, violating antitrust laws.

Horizontal Merger

A merger between companies that are in direct competition with each other, operating in the same industry and at the same stage of production.