Which of the Following Regarding a Warranty Is NOT True

question 61

Multiple Choice

Which of the following regarding a warranty is NOT true?

• A) It is a form of consumer insurance.
• B) Consumers may buy one even if the cost of the warranty is greater than the expected future claim paid by the manufacturer.
• C) It decreases the consumer's expected utility from an item.
• D) It signals to consumers that the goods are of high quality.

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Definitions:

Reye's Syndrome

A rare but serious condition that causes swelling in the liver and brain, often associated with the use of aspirin in children.

Upper Respiratory

Pertains to the parts of the respiratory system located above the diaphragm, including the nose, nasal passages, throat, and larynx.

Membrane Excitability

Membrane excitability refers to the ability of nerve and muscle cells to produce a rapid change in their membrane potential, crucial for the generation and propagation of electrical signals.

Electric Charges

Electric charges are the physical properties of particles that cause them to attract or repel each other, based on the principle that like charges repel and opposite charges attract.