The Magnuson Act of 1975 says that
A. producers of goods must warrant their products as merchantable
B. a written warranty reduces the responsibility of a producer
C. producers must provide a clearly written warranty
D. each product must be identified with a readable electronic code
E. goods must be clearly labeled and easy to understand
Answer: (C) Along with the FCC guidelines, the Magnuson Act of 1975 ensures that warranties are clear and definite—not deceptive or unfair. The Act states that producers must provide a clearly written warranty; therefore, (C) is the correct choice. U.S. Common Law says (A) producers of goods must warrant their products as merchantable. Although it may reduce the responsibility of the firm (B), that was not the ruling of the Magnuson Act. The UPC code that identifies products with a readable electronic code was developed to speed the handling of fast-selling products (D). The Federal Fair Packaging and Labeling Act of 1966 required goods to be clearly labeled and understandable (E).