Question

todd recently purchased a mountain bike from abc company. after two weeks of normal use, the frame broke. abc had promised todd that it would refund his entire purchase price if the bike did not perform as expected. this promise would be classified as a ______

Answer 1

ABC company's promise to Todd for a full refund if the mountain bike does not perform as expected is a money-back guarantee, an explicit reassurance of product quality.

Step-by-step explanation:

The promise that ABC company made to Todd, which stated that he would receive a full refund if the mountain bike did not perform as expected, would be classified as a money-back guarantee. This is an agreement that functions as a promise of quality and is a strategy used by companies, especially those selling goods through mail-order catalogs or the web where physical examination of the product prior to purchase is not possible.

Such guarantees serve to reassure the customer and encourage purchases by providing a form of risk reduction. Guarantees, warranties, and service contracts are all forms of explicit reassurance provided by sellers to instill confidence in their products.