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Mary Sells Handmade Earrings for a Living

Question 110

Multiple Choice

Mary sells handmade earrings for a living.Susan is a new lawyer and a friend of Mary who gives legal advice to Mary in return for earrings.Susan tells Mary that under the Magnuson-Moss Act she is required to provide all buyers with a written warranty setting forth their rights as consumers.Mary asks if there is not a way around that because she is tired of complaining customers who do not take care of their earrings and that she would love to find a way to provide no warranties whatsoever.Which of the following is true regarding Susan's advice and warranties on the earrings?


A) Susan is wrong,and Mary is not required to offer any warranties.
B) Susan is partially correct,and Mary must provide a limited written warranty to comply with the Magnuson-Moss Act.
C) Susan is correct,and Mary must provide a full written warranty to comply with the Magnuson-Moss Act.
D) Susan is partially correct,and Mary must provide a limited written warranty under the Magnuson-Moss Act only if her average gross sales are over $5,000.
E) Susan is partially correct,and Mary must provide a full written warranty under the Magnuson-Moss Act only if her average gross sales are over $10,000.

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