Refer to Exhibit 5-7

question 252

Multiple Choice

Refer to Exhibit 5-7. If the government were to remove a price ceiling of $2.00 per gallon in the milk market, the result would be:

• A)​a decrease in price and increase in the quantity of milk supplied.
• B)​a decrease in price and increase in the quantity of milk demanded.
• C)​an increase in both price and the quantity of milk supplied.
• D)​an increase in both price and the quantity of milk demanded.

Evaluate how sellers can disclaim or modify warranties and when such disclaimers or modifications are effective.

Identify the nature of puffery and its distinction from express warranties.

Understand the legal remedies available for breach of warranty.

Comprehend the conditions under which implied warranties of merchantability and fitness for a particular purpose arise.

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Definitions:

Unethical

Actions or behaviors that are considered wrong or improper according to moral principles.

Disproportionately Severe

Punishments or actions that are excessively harsh or severe in relation to the nature of the offense or situation.

Morality Policy

Refers to government actions designed to address issues considered to fundamentally pertain to moral values, such as abortion, drug use, and same-sex marriage.

Moral Panic

A widespread feeling of fear and concern among the public, often out of proportion to the actual threat, usually about moral issues or societal values.