In: Accounting
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.
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