Final answer:
Karla's personal satisfaction guarantee is a subjective standard in her car purchase contract and doesn't require her to be reasonable, conflicting with the provided statement. Guarantees, warranties, and service contracts are forms of explicit reassurance in commerce.
Step-by-step explanation:
The question at hand involves a situation where Karla was given a guarantee by a sales representative stating she would be personally satisfied with her vehicle purchase, which was included in the written contract. When it comes to legal disputes over satisfaction guarantees, the application of a subjective or objective standard can be critical. The provided statement suggests that if a controversy arises, the court will apply a subjective standard meaning that Karla's personal satisfaction would have to be judged as reasonable. This is not entirely accurate. A subjective standard indeed focuses on Karla's personal satisfaction, however, it does not require her judgment to be reasonable. Instead, the subjective standard means that Karla's personal opinion and satisfaction are what matter, without needing to meet a reasonableness test that is characteristic of an objective standard.
In commerce, money-back guarantees and service contracts are forms of explicit reassurance that can be offered to customers, allowing them to feel more secure in their purchases. These reassurances may also be unstated, such as with movie theaters or restaurants where refunds or exchanges may be provided if the customer is not satisfied. A seller may offer a money-back guarantee as a promise of quality, which is particularly helpful in encouraging sales for products that customers can't physically inspect before purchase, such as items sold through mail-order catalogs or online.