Business Law - Chapter 7

The federal Magnuson-Moss Warranty Act applies only to written warranties on certain products sold to consumers. 

• True
• False

Merchantability requires that any warranty protection that is customary in the trade be extended to all buyers. 

• True
• False 

The Consumer Product Safety Commission receives reports about product failure from 

• the distributor
• the manufacturer
• the consumer
• all of these 

Assurance of quality or promise of performance clearly made by the seller is an express warranty 

• true
• false 

An implied warranty of fitness for a particular purpose arises when the buyer personally selects the goods and does not rely on the skill or judgement of the seller.

• True
• False

When buying any good or service, customers are entitled to expect

• The goods to be of the best standard possible

• The goods are satisfactory quality

• Goods to be guaranteed for 3 years

• Good to be the same price as competitors

A business must sell goods that

• Do what they are meant to do

• Perform as well as competitor goods

• Are made to last for years

• Are as cheap as possible

A business must sell goods that

• Do what they are meant to do

• Perform as well as competitor goods

• Are made to last for years

• Are as cheap as possible

A way in which a business can be affected by consumer law is

• Having compensation claims because goods are high quality

• Losing reputation due to defective goods

• Having to sack staff who are always late for work

• Profits being reduced by paying higher wages

Who does consumer law protect?

• Banks that provide finance

• Businesses that provide services

• Purchasers of products

• Suppliers of raw materials