Future Business Leaders of America (FBLA) Business Law Practice Exam

Which term refers to a promise made regarding the quality or functionality of a product?

1. Guarantee

2. Indemnity

3. Express warranty

4. Assurance

The correct answer is: Express warranty

The term that refers to a promise made regarding the quality or functionality of a product is an express warranty. An express warranty is a specific affirmation of fact or promise made by the seller regarding the goods being sold, which guarantees that the product will meet certain standards or perform in specific ways. It can be spoken or written, and it is legally binding. This concept is fundamental in consumer protection law, emphasizing the seller's obligation to meet the stated quality or performance levels. If the product fails to comply with the express warranty, the buyer may be entitled to remedies such as repair, replacement, or refunds. In contrast, a guarantee is often used interchangeably with an express warranty in casual contexts, but it generally refers to a broader commitment rather than a specific legal promise tied to the terms of sale. Indemnity relates to compensation for loss or damage and does not specifically tie into product quality or functionality. Assurance, while implying a promise or guarantee of some sort, does not have the legal specificity required to be classified as a warranty.