Reference no: EM132183270

1. A company came up with a product that was based on cutting–edge technology. It wanted to capture a big chunk of market share with its new product, and therefore came up with an interesting advertising campaign. The campaign claimed that the product was the best investment in terms of value for money. Which of the following statements is true with regard to this scenario?

It is a case of limited warranty, since the promise of best value for money arises only upon purchase of the product, not otherwise.

It is an instance of selling defective goods since such lofty statements are invariably made to cover up defects.

It is not a warranty but is a mere expression of opinion, since there are no obligations associated with the statements or representations made.

It is an affirmation of fact made by the seller to the buyer and hence, constitutes an express warranty.

2. Under which of the following circumstances is the implied warranty of merchantability NOT excluded or modified?

A statement that the sale is “as is” or “with all faults”

Normal dealings and customs of the buyer and seller

The exclusion or modification is found to be unconscionable

A purchase made after examination of the goods by the buyer