Final answer:
The statement is false. A mere claim that goods are the best does not create a warranty. Warranties are explicit promises, and buyers should understand their terms fully before purchasing.
Step-by-step explanation:
False. A seller or lessor claiming that the goods are the best of their kind does not automatically result in a warranty. Warranties are specific promises made by the seller about the quality, condition, or performance of the goods.
Generally, there are two types of warranties that can arise when goods are sold: express warranties and implied warranties. An express warranty is a clear, explicit promise about the quality or functionality of the product, which is communicated by the seller to the buyer. This could be a written guarantee that the product will perform in a certain way for a specific period. On the other hand, an implied warranty is one that is not directly stated but is implied by the nature of the transaction or by law, such as the warranty of merchantability or the warranty of fitness for a particular purpose.
Moreover, the option to buy a service contract is distinct from a warranty. It is a paid agreement for maintenance and repairs beyond the scope of the standard warranty. Caveat emptor, meaning 'let the buyer beware', applies when considering warranties, as buyers should understand the exact terms of any warranty or service contract before finalizing their purchase.