Introductory Business Law CLEP Prep Practice Exam

Which of the following is the most accurate description of implied warranty of merchantability?

1. A written warranty issued by a manufacturer

2. A guarantee given by the seller that the things they are selling meet minimum standards

3. A statutory guarantee implying that the item will last forever

4. A warranty that the item meets the buyer’s expectations

The correct answer is: A guarantee given by the seller that the things they are selling meet minimum standards

The implied warranty of merchantability is a guarantee given by the seller that the product or item being sold meets a certain level of quality and will be able to serve the basic purpose for which it was intended. Option A is incorrect because it refers to a written warranty, which is not necessarily implied. Option C is incorrect because it implies that the product will last forever, which is not a realistic expectation and not covered by the implied warranty. Option D is also incorrect because it refers to the buyer's expectations, rather than the minimum standards that need to be met for the warranty to be valid. Therefore, option B is the most accurate description of implied warranty of merchantability as it conveys the legal implication that the product meets certain basic standards of quality and functionality.