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

question 42

Multiple Choice

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

• A) 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.
• B) It means only that the good or its defective part will be repaired. The buyer has no other remedy.
• C) 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; and also that the buyer will receive extra funds to account for expenses.
• D) It means that the buyer must be immediately refunded the full purchase price.
• E) It means that the buyer has the option of an immediate refund of the full purchase price or repair of the good.

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Definitions:

Automobile Market

The market sector that involves the buy, sell, production, and design of automobiles including cars, trucks, and motorbikes.

Strategic Considerations

The thoughtful planning and analysis focused on long-term business or military objectives, taking into account the competitive environment and potential actions of other parties.

Predatory Pricing

Selling a product or service at a very low price with the intention of driving competitors out of the market or creating barriers to entry for potential new competitors.

Tying

A sales practice where one product is sold or leased only on the condition of buying another product or agreeing to terms that are not initially disclosed.