Fact Pattern 23-B1

question 35

Multiple Choice

Fact Pattern 23-B1
HiDef, Inc., a television set maker, provides a limited warranty on its com?puters in a contract that includes an "informal dispute settlement proce?dure" clause. Ike buys an HiDef computer, which soon malfunctions. After several unsuc?cessful repair attempts, Ike files a suit against HiDef, seeking damages under the Magnuson-Moss Warranty Act.
-Refer to Fact Pattern 23-B1. Suppose that the dispute-resolution clause in HiDef's contract calls for binding arbitration. A court is most likely to order

• A) HiDef to give Ike a new computer.
• B) Ike to accept the situation because of the limited warranty.
• C) the case to proceed immediately to trial.
• D) the parties to arbitrate the dispute.

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Definitions:

Raw Materials

The basic, unprocessed inputs required for the production process, such as metals, wood, and agricultural products.

Units Requisitioned

Describes the quantity of inventory items requested or ordered for production or usage in a business operation.

Production

The process of creating, manufacturing, or enhancing goods and services through the combination of labor, materials, and machinery.

Direct Labor Hour

The amount of time spent by workers directly on the manufacturing of products or services.