Final answer:
The statement is false. If repair or replacement is not possible, the buyer may be entitled to other remedies such as a refund or compensation.
Step-by-step explanation:
The statement 'If a contract states that repair or replacement is the exclusive remedy, then it is, even if repair or replacement is not possible' is False. When a contract includes a clause stating that repair or replacement is the exclusive remedy, it means that the seller is obligated to either repair or replace the defective product. However, if repair or replacement is not possible, the buyer may be entitled to other remedies such as a refund or compensation.