All of the following are exceptions to the principle of indemnity EXCEPT:

Distinguish the following costs as prevention, appraisal, internal failure, or external failure

a) Rework substandard products b) Technical support provided to suppliers c) Warranty repairs and replacements d) Inspection of test equipment e) Liability arising from defective products f) Field testing and appraisal at customer site g) Disposal of defective products What will be an ideal response

Thomas bought a vehicle from a used-car dealer. He returned it to the dealer because the transmission fell out 150 miles after he purchased it. The dealer refused to accept the return because the vehicle was sold 'as is.' This is an example of a limited warranty.

a. true b. false