In: Operations Management
True or False:
6. Warranty disclaimers have great potential for unconscionable application in standardized form contracts.
True or False:
1. Because Dave did not know that the car he bought was stolen, he did not warrant the title when he resold it to John.
Answer: False.
It is false because without taking the warranty title how can Dave sell a car.
2. To recover on a warranty, a buyer must reject or revoke any acceptance of goods.
Answer: True.
Because a warranty means it should be free from any defects. And if any defect is seen a product can be rejected while buying it.
3. D buys a crockpot from Q-Mart. It leaks, soaks an electrical cord, starts a fire and burns D. D can’t recover from Q-Mart more than the crock’s replacement cost since his burns weren’t foreseeable by Q-Mart.
Answer: True.
Because burn is consequential damage which cannot be foreseen at the time of selling a product.
4. A written warranty for consumer products may not limit the duration of implied warranties.
Answer: False.
Because warranties have a limitation period. And, expressed or implied warranty both are a part of it.
5. The seller of a new refrigerator cannot limit the duration of the warranties of fitness and merchantability while designating its warranty as “full.’
Answer: False.
Because every product has a life span based on the quality of manufacturing.
6. Warranty disclaimers have great potential for unconscionable application in standardized form contracts.
Answer: True.
Because a warranty disclaimer limits the conscious decisions of the buyer.