Question 1

Give an account of express warranties.

Accepted Answer

Express warranties are created when a seller or lessor affirms that the goods he or she is selling or leasing meet certain standards of quality, description, performance, or condition.Express warranties can be either written, oral, or inferred from the seller's conduct.It is not necessary to use formal words such as warrant or guarantee to create an express warranty.Express warranties can be made by mistake because the seller or lessor does not have to specifically intend to make the warranty.Sellers and lessors are not required to make express warranties.Generally, express warranties are made to entice consumers and others to buy or lease their products.Buyers and lessees can recover for breach of an express warranty if the warranty induced the buyer to purchase the product or the lessee to lease the product.

Question 2

An "as is" disclaimer implies that all implied warranties are disclaimed.

Accepted Answer

A) True 
 B)False  True

Question 3

An express warranty is created upon description of the goods.

Accepted Answer

A) True 
 B)False  True

Question 4

Explain the implied warranty of fitness for a particular purpose.

Accepted Answer

The UCC contains an implied warranty of

Question 5

Damages that are generally equal to the difference between the value of the goods as warranted and the actual value of the goods accepted at the time and place of acceptance is known as ________.

Accepted Answer

A) punitive damages 
B) incidental damages 
C) compensatory damages 
D) future damages 
A) punitive damages 
B) incidental damages 
C) compensatory damages 
D) future damages

Question 6

An express warranty can only be limited if the warranty disclaimer and the warranty can be reasonably construed with each other.

Accepted Answer

A) True 
 B)False

Question 7

Disclaimer of the implied warranty of fitness for a particular purpose can be in oral.

Accepted Answer

A) True 
 B)False

Question 8

A commendation of goods, made by a seller or lessor that does not create an express warranty is referred to as a(n)________.

Accepted Answer

A) statement of opinion 
B) implied warranty 
C) guarantee 
D) caveat emptor 
A) statement of opinion 
B) implied warranty 
C) guarantee 
D) caveat emptor

Question 9

Under the Magnuson-Moss Warranty Act, aggrieved consumers must assert their warranty breach claims through the informal dispute-resolution procedure before taking legal action.

Accepted Answer

A) True 
 B)False

Question 10

Where there has been a breach of warranty, the buyer or lessee may sue the seller or lessor to recover ________ damages.

Accepted Answer

A) compensatory 
B) future 
C) punitive 
D) liquidated 
A) compensatory 
B) future 
C) punitive 
D) liquidated

Question 11

Implied warranties of quality cannot be disclaimed.

Accepted Answer

A) True 
 B)False

Question 12

A warranty that is created when a seller or lessor makes an affirmation that the goods he or she is selling or leasing meet certain standards of quality, description, performance, or condition is known as a(n)________ warranty.

Accepted Answer

A) implied 
B) conditional 
C) closed 
D) express 
A) implied 
B) conditional 
C) closed 
D) express

Question 13

StoryBoard Creatives approached Logos Studios with a script for a movie.Logos Studios liked it, and bought the rights for the script from StoryBoard.Subsequently, Mr.Derrida, a former employee of StoryBoard claimed that he had the copyright to that script.Mr.Derrida proved his copyright in court.He then notified Logos Studios that they could not start production on the script without his permission, and adequate payment of fees.Logos Studios then rescinded the contract with StoryBoard based on the breach of ________.

Accepted Answer

A) warranty of no security interests 
B) warranty against infringements 
C) warranty of no interference 
D) warranty of good title 
A) warranty of no security interests 
B) warranty against infringements 
C) warranty of no interference 
D) warranty of good title

Question 14

That "goods must be fit for the ordinary purposes for which they are used, " would be an example for a(n)________.

Accepted Answer

A) implied warranty 
B) explicit warranty 
C) statement of opinion 
D) stamp of approval 
A) implied warranty 
B) explicit warranty 
C) statement of opinion 
D) stamp of approval

Question 15

Which of the following is true of the Magnuson-Moss Warranty Act?

Accepted Answer

A) It requires all warrantors to make express written warranties. 
B) It obligates all warrantors to make disclaimer warranties for their products. 
C) It authorizes warrantors to establish an informal dispute-resolution procedure. 
D) Implied warranties are voidable under this Act. 
A) It requires all warrantors to make express written warranties. 
B) It obligates all warrantors to make disclaimer warranties for their products. 
C) It authorizes warrantors to establish an informal dispute-resolution procedure. 
D) Implied warranties are voidable under this Act.

Question 16

The ________ is a test to determine merchantability of food products based on what the average buyer is supposed to find in particular food products.

Accepted Answer

A) foreign substance food test 
B) contagion test 
C) contamination test 
D) consumer expectation test 
A) foreign substance food test 
B) contagion test 
C) contamination test 
D) consumer expectation test

Question 17

The implied warranty of merchantability does not apply to sales or leases by nonmerchants or casual sales.

Accepted Answer

A) True 
 B)False

Question 18

Sellers and lessors are not required to make express warranties.

Accepted Answer

A) True 
 B)False

Question 19

Mark goes to Tony's Lumber Yard to buy some lumber to build a new roof for his cabin.Mark tells Tony, the lumber yard owner, to provide him an exact type of wood that can resist the wood decay caused due to the damp environment around the cabin.Mark buys the lumber after Tony assures him that the wood is exactly Mark is looking for.But the dampness affects the wood and it caves in.What warranty has Tony explicitly breached by not providing Mark the lumber he needed?

Accepted Answer

A) express warranty 
B) statement of opinion 
C) implied warranty of fitness for human consumption 
D) implied warranty of fitness for a particular purpose 
A) express warranty 
B) statement of opinion 
C) implied warranty of fitness for human consumption 
D) implied warranty of fitness for a particular purpose

Question 20

An affirmation of the value of goods creates an express warranty.

Accepted Answer

A) True 
 B)False

Exam 21: Warranties

Give an account of express warranties.

An "as is" disclaimer implies that all implied warranties are disclaimed.

An express warranty is created upon description of the goods.

Explain the implied warranty of fitness for a particular purpose.

Damages that are generally equal to the difference between the value of the goods as warranted and the actual value of the goods accepted at the time and place of acceptance is known as ________.

An express warranty can only be limited if the warranty disclaimer and the warranty can be reasonably construed with each other.

Disclaimer of the implied warranty of fitness for a particular purpose can be in oral.

A commendation of goods, made by a seller or lessor that does not create an express warranty is referred to as a(n)________.

Under the Magnuson-Moss Warranty Act, aggrieved consumers must assert their warranty breach claims through the informal dispute-resolution procedure before taking legal action.

Where there has been a breach of warranty, the buyer or lessee may sue the seller or lessor to recover ________ damages.

Implied warranties of quality cannot be disclaimed.

A warranty that is created when a seller or lessor makes an affirmation that the goods he or she is selling or leasing meet certain standards of quality, description, performance, or condition is known as a(n)________ warranty.

That "goods must be fit for the ordinary purposes for which they are used, " would be an example for a(n)________.

Which of the following is true of the Magnuson-Moss Warranty Act?

The ________ is a test to determine merchantability of food products based on what the average buyer is supposed to find in particular food products.

The implied warranty of merchantability does not apply to sales or leases by nonmerchants or casual sales.

Sellers and lessors are not required to make express warranties.

An affirmation of the value of goods creates an express warranty.

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