Question

In: Accounting

Which of the following statements is true of the Magnuson-Moss Warranty Act? Multiple Choice It requires...

Which of the following statements is true of the Magnuson-Moss Warranty Act?


Multiple Choice


It requires the seller to make the written warranty terms available to the prospective buyer before the sale.


It does not allow consumers to sue the maker of the warranty for failure to fulfill its terms.


It enforces the seller's obligation to make the terms available only after the sale.


It permits consumers to sue the manufacturer if the manufacturer offers the warranty, but not the retailer even if the retailer grants the warranty.


Solutions

Expert Solution

1) Correct answer is :It requires the seller to make the written warranty terms available to the prospective buyer before the sale

Explanations:

*Magnuson-Moss Warranty Act does not require to have a warranty on any product, But once the seller

Provide warranty to a consumer products then he should be complied with the provisions and conditions

of the act.

*Rule 701 specifies the information that must appear in a written warranty on a consumer product

*Rule 702 details the obligations of sellers and warrantors to make warranty information available to consumers prior to purchase.

It does not allow consumers to sue the maker of the warranty for failure to fulfill its terms - Wrong , The acts allows consumers to sue the maker of the warranty for failure to fulfill its terms

It enforces the seller's obligation to make the terms available only after the sale- Wrong , the seller should do the same before the sale

It permits consumers to sue the manufacturer if the manufacturer offers the warranty, but not the retailer even if the retailer grants the warranty.

- Wrong if the manufacture does not provie the warranty and retailer provides

the warranty for breach of term of warranty buyer can not sue the manufacturer


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