The producer's statement of what it will do to compensate the buyer if the product is defective or does not work properly is known as a(n)_____.
A) guarantee
B) warranty
C) insurance
D) liability

Question

The producer's statement of what it will do to compensate the buyer if the product is defective or does not work properly is known as a(n)_____.
A) guarantee
B) warranty
C) insurance
D) liability

Quizplus · Accepted Answer

A warranty is the producer's statement of what it will do to compensate the buyer if the product is defective or does not work properly. In many instances, the courts also hold that businesses have implied warranties or unstated promises to compensate buyers if their products fail to perform up to the basic standards of the industry or to the level promised.

The Producer's Statement of What It Will Do to Compensate