Merchantable

### What does it mean for a product to be merchantable? - [ ] It is sold at a discounted price. - [x] It meets reasonable quality and suitability standards for sale. - [ ] It is banned from being sold. - [ ] It is for display purposes only. > **Explanation:** A merchantable product meets reasonable quality and suitability standards for sale in its market. ### Which of the following is NOT a requirement for a product to be considered merchantable? - [ ] It is fit for the purpose it is sold. - [ ] It meets average quality standards. - [x] It is the cheapest option available. - [ ] It is salable. > **Explanation:** Being the cheapest option available is not a requirement for merchantability. The product must be fit for its intended purpose, meet average quality standards, and be salable. ### Can a seller legally disclaim the warranty of merchantability? - [x] Yes, if done through a clear and written stipulation. - [ ] No, it is absolutely impossible. - [ ] Only for digital goods. - [ ] Only if the product is used. > **Explanation:** A seller can disclaim the warranty of merchantability, but must do so with clear and written stipulations, and this is subject to consumer protection laws. ### When evaluating if goods are merchantable, they are compared to what? - [ ] Newer versions of themselves. - [ ] The cheapest alternatives. - [x] Similar items in the market. - [ ] The lowest-performing items. > **Explanation:** Merchantability is evaluated by comparing the goods to similar items in the market to ensure they meet ordinary quality and functionality standards. ### What legal remedy might a buyer have if a product is not merchantable? - [ ] They can keep the product but demand an apology. - [x] They may return the item, request a replacement, or seek compensation. - [ ] They can only ask for another merchantable product. - [ ] They have no remedy. > **Explanation:** If a product is not merchantable, a buyer has several legal remedies, such as returning the item, requesting a replacement, or seeking monetary compensation. ### Why is merchantability an important concept in business law? - [ ] It ensures that only luxury items are sold. - [ ] It helps to determine taxes on goods. - [ ] It maintains quality and fairness in commerce. - [ ] It ensures that goods are always sold at a high price. > **Explanation:** Merchantability maintains quality and fairness in commerce, ensuring that goods sold are suitable for consumer use. ### Which body of law often deals with ensuring products are merchantable? - [x] Commercial law and consumer protection law. - [ ] Criminal law. - [ ] Immigration law. - [ ] Family law. > **Explanation:** Commercial law and consumer protection laws often deal with ensuring products are merchantable. ### In which scenario might a product be deemed NOT merchantable? - [ ] When it is handmade. - [ ] When it is an electronic device. - [x] When it breaks shortly after purchase despite normal use. - [ ] When it is sold online. > **Explanation:** A product that breaks shortly after purchase despite normal use may be deemed not merchantable, as it fails to meet reasonable quality and usability standards. ### What term describes the legal guarantee that a product will meet certain quality standards? - [x] Warranty - [ ] Marketing - [ ] Branding - [ ] Discount > **Explanation:** A warranty is the legal guarantee that a product will meet certain quality and usability standards. ### What can consumer protection laws help ensure regarding merchantable goods? - [ ] Prices are consistent across all retailers. - [ ] Goods are sold directly from manufacturers. - [x] Goods meet appropriate quality and functionality standards. - [ ] Goods are always locally sourced. > **Explanation:** Consumer protection laws help ensure that the goods sold meet appropriate quality and functionality standards, contributing to the concept of merchantability.