A Court Is Most Likely to Find a Disclaimer of Warranty

question 28

Multiple Choice

A court is most likely to find a disclaimer of warranty unconscionable:

• A) if the goods sold "as is" or "with all faults" are sold without any warranties.
• B) if the plaintiff is a merchant trying to recover for property damage or economic loss.
• C) in the case of a conspicuous disclaimer.
• D) in the case of a personally injured consumer.

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Definitions:

Highly Valued Uses

These are applications or purposes for which a resource, product, or service is considered particularly beneficial or desirable, attracting higher willingness to pay.

Specialization

The practice of focusing resources on the production of specific goods or services to increase efficiency and expertise.

Total Output

The total quantity of goods or services produced by a firm or economy over a specific period.

Invisible Hand

The concept that the self-regulating nature of the marketplace leads to the efficient allocation of resources through individuals pursuing their own self-interest, originally introduced by Adam Smith.