OMVIC Practice Test

Choose the most correct answer: An as-is sale...

1. Isn't legal to a consumer

2. Must have the buyer write an explanation of "as-is"

3. Doesn't require the buyer to initial the words "as-is"

4. Must include a specific definition of "as-is" in the contract

The correct answer is: Must include a specific definition of "as-is" in the contract

An as-is sale occurs when a seller offers the product or property in its current condition, typically without any warranties or guarantees. This means that the buyer is taking on the risk of any potential defects or issues with the product. Option A, that an as-is sale isn't legal to a consumer, is incorrect because as-is sales are legal if the buyer agrees to the terms. Option B, that the buyer must write an explanation of "as-is", is incorrect because it is the responsibility of the seller to clearly communicate the "as-is" condition of the sale. Option C, that the buyer doesn't need to initial the words "as-is", is incorrect because it is important for the buyer to acknowledge and understand the terms of the sale, even if they are purchasing the product or property in its current condition. Option D, that the sale must include a specific definition of "as-is" in the contract, is the most correct because it ensures that both parties are aware and in agreement of the terms of the sale.