Friday, July 31, 2009

In reference to the CA Dept of Insurance Independent Adjusters Exam, what does "An Express Warranty" mean?

It may have been described as either (a) a warranty created by specific statements made, (b) a warranty based upon manufacturer's promises or (c) implied from the nature of the transaction. Are any of these correct?

In reference to the CA Dept of Insurance Independent Adjusters Exam, what does "An Express Warranty" mean?
It's A.





There are basically TWO types of warranties - Express - which is a specifically stated warranty (read the fine print whenever you buy a new car, THAT is an express warranty), and implied, which isn't written down, but is something you assume (like toothpaste won't be sweetened with a poisonous substance).





The BEST way to answer questions like these, is to eliminate the obviously wrong answers - C is the MOST wrong, B is the next most wrong, because "based on" is not the exact way an express warranty works.


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