Mountain Bikes, Inc

question 21

Multiple Choice

Mountain Bikes, Inc. (MBI) , and Nero enter into a contract for a sale of a mountain bike. MBI, a merchant who deals in goods of the kind sold, makes implied and express warranties in connection with the sale. The Magnuson-Moss Warranty Act attempts to prevent deception in warranties by

• A) displacing the UCC as the primary source of warranty rules.
• B) making warranties easier to understand.
• C) prohibiting disclaimers of warranties.
• D) requiring sellers to give written warranties for consumer goods.

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Definitions:

Scale

The size or level of activity of a company or operation, or the capacity to adjust the size or level of activity.

Increasing Returns

A condition in economics when an increase in the scale of production leads to a greater proportional increase in output.

Isoquants

Curves that represent combinations of inputs that produce the same level of output, used in production theory.

Output

Output refers to the quantity of goods or services produced by a firm, industry, or economy within a certain period.