Question 1

Any description of the good's physical nature or its use, either in general or specific circumstances, that becomes part of the contract is called an express warranty.

Accepted Answer

A) True 
 B)False  True

Question 2

List the circumstances under which an implied warranty of fitness for a particular purpose will be found.

Accepted Answer

That warranty comes about when a seller or lessor knows or has reason to know (1) why the buyer or lessee is purchasing or leasing the goods in question and (2) that the buyer or lessee is relying on him or her to make the selection.

Question 3

Joseph decides he no longer needs his matching couch and loveseat that both have pull-out beds in them. Joseph's next door neighbor buys Joseph's furniture for $1,500. Does an implied warranty of merchantability apply in this case?

Accepted Answer

A)  Yes, because the couch and loveseat are consumer goods. 
B)  Yes, because the couch and loveseat were valued over $500. 
C)  No, because Joseph is not a merchant buying goods in the ordinary course of business. 
D)  No, because the purchaser must have purchased or leased the goods from a merchant. 
E)  Not unless formal title to the couch and loveseat was transferred to Joseph. 
A)  Yes, because the couch and loveseat are consumer goods. 
B)  Yes, because the couch and loveseat were valued over $500. 
C)  No, because Joseph is not a merchant buying goods in the ordinary course of business. 
D)  No, because the purchaser must have purchased or leased the goods from a merchant. 
E)  Not unless formal title to the couch and loveseat was transferred to Joseph. D

Question 4

The UCC does not permit buyers to recover from sellers who have breached warranties of title.

Accepted Answer

A) True 
 B)False

Question 5

According to the UCC, what needs to be shown for goods to be found merchantable?

Accepted Answer

For goods to be merchantable under the U

Question 6

Western law's "warranty" is referred to as a pledge in the country of ________.

Accepted Answer

A)  Canada 
B)  Kazakhstan 
C)  Japan 
D)  China 
E)  Norway 
A)  Canada 
B)  Kazakhstan 
C)  Japan 
D)  China 
E)  Norway

Question 7

Theilan and Wayland are merchants negotiating contract terms under a contract that will be governed by the UCC. What is the shortest possible statute of limitations for bringing a lawsuit based on breach of contract?

Accepted Answer

A)  10 days. 
B)  One month. 
C)  18 months. 
D)  Three years. 
E)  Four years. 
A)  10 days. 
B)  One month. 
C)  18 months. 
D)  Three years. 
E)  Four years.

Question 8

Is the manager correct that the store never offers express or implied warranties on products?

Accepted Answer

A)  Yes, because unless Carmen had a written promise specifically providing for a warranty, the computer was sold without a warranty. 
B)  Yes, because unless Carmen had an oral promise specifically promising a warranty or a written contract specifically providing for a warranty, the computer was sold without a warranty. 
C)  No, because the computer was sold with a warranty of merchantability. 
D)  No, because the computer was sold with a warranty of merchantability and also with a warranty of fitness for a particular purpose. 
E)  No, because the computer was sold with a warranty of merchantability, with a warranty of fitness for a particular purpose, and also with an express warranty. 
A)  Yes, because unless Carmen had a written promise specifically providing for a warranty, the computer was sold without a warranty. 
B)  Yes, because unless Carmen had an oral promise specifically promising a warranty or a written contract specifically providing for a warranty, the computer was sold without a warranty. 
C)  No, because the computer was sold with a warranty of merchantability. 
D)  No, because the computer was sold with a warranty of merchantability and also with a warranty of fitness for a particular purpose. 
E)  No, because the computer was sold with a warranty of merchantability, with a warranty of fitness for a particular purpose, and also with an express warranty.

Question 9

[Boat Tow] Ryan went to a new car dealership and told the salesperson, Kristin, who was not the manager, that he needed a new car with good gas mileage and that could pull his big boat. Kristin encouraged him to buy a smaller car that she promised could pull the boat. Kristin was new to the job and did not realize that the small car did not have sufficient power to pull the boat for any distance. Ryan bought the car and used it to pull the boat. Unfortunately, the heavy pull on the car did significant damage to the car's engine. Ryan complained to Kristin who denied any liability. Ryan, who had half a semester of business law, informed Kristin that along with the sale of the car he also received an express warranty, an implied warranty of merchantability, and an implied warranty of fitness for a particular purpose; and that he could recover under any of those theories. Kristin truthfully said that no explicit promises regarding warranties were ever made orally or in writing.
-Is Ryan correct that the car was sold with an implied warranty of merchantability?

Accepted Answer

A)  No, because there was no writing guaranteeing the warranty signed by the salesperson. 
B)  No, because Kristin was only engaged in puffing. 
C)  No, because only the manager can make such a warranty. 
D)  Yes, but only because Kristin verbally made certain promises. 
E)  Yes, because there was a reasonable expectation of how the vehicle would perform. 
A)  No, because there was no writing guaranteeing the warranty signed by the salesperson. 
B)  No, because Kristin was only engaged in puffing. 
C)  No, because only the manager can make such a warranty. 
D)  Yes, but only because Kristin verbally made certain promises. 
E)  Yes, because there was a reasonable expectation of how the vehicle would perform.

Question 10

A breach of ________ occurs if it is generally accepted in the trade that a certain product is always preassembled and the seller does not deliver the goods in that condition.

Accepted Answer

A)  the implied warranty of merchantability 
B)  the implied warranty of fitness for a particular purpose 
C)  the implied warranty of trade usage 
D)  an express warranty 
E)  an express warranty of quality 
A)  the implied warranty of merchantability 
B)  the implied warranty of fitness for a particular purpose 
C)  the implied warranty of trade usage 
D)  an express warranty 
E)  an express warranty of quality

Question 11

Lexi purchased a new printer for her business from XYZ Company. Three years to the day after she purchased the printer, she started noticing problems with it. She negotiated with XYZ Company, but was unable to get a resolution of her problems. She sued XYZ Company four years and one day after she bought the printer. XYZ Company defended on the basis that it was only the seller, not the manufacturer, and also on the basis of the statute of limitations. Assuming the printer is defective and the court follows the reasoning of the case in the text Melissa Kahn v. Volkswagen of America, Inc., which of the following is a true statement regarding the positions of the parties?

Accepted Answer

A)  XYZ Company will win because although Lexi sued within the statute of limitations, in such situations Lexi must sue the manufacturer. 
B)  XYZ Company will win because although Lexi correctly sued the seller, Lexi filed suit outside the four year statute of limitations. 
C)  XYZ Company will win because in such situations Lexi must sue the manufacturer and also because Lexi filed suit outside the four year statute of limitations. 
D)  Lexi will be allowed to proceed because she can hold XYZ Company responsible and because the statute of limitations was tolled during negotiations, she sued on a timely basis. 
E)  Lexi will win because she can hold XYZ Company responsible and because there is no statute of limitations for business goods of this type. 
A)  XYZ Company will win because although Lexi sued within the statute of limitations, in such situations Lexi must sue the manufacturer. 
B)  XYZ Company will win because although Lexi correctly sued the seller, Lexi filed suit outside the four year statute of limitations. 
C)  XYZ Company will win because in such situations Lexi must sue the manufacturer and also because Lexi filed suit outside the four year statute of limitations. 
D)  Lexi will be allowed to proceed because she can hold XYZ Company responsible and because the statute of limitations was tolled during negotiations, she sued on a timely basis. 
E)  Lexi will win because she can hold XYZ Company responsible and because there is no statute of limitations for business goods of this type.

Question 12

An advertisement in a car magazine states that "this motor oil will keep your engine cleaner than any other motor oil on the market. We guarantee this or your money back." This statement is an example of:

Accepted Answer

A)  an implied warranty 
B)  an express warranty 
C)  a claimed warranty 
D)  puffing 
E)  a consequential warranty 
A)  an implied warranty 
B)  an express warranty 
C)  a claimed warranty 
D)  puffing 
E)  a consequential warranty

Question 13

A salesperson gives a veterinarian a sample of dog shampoo that is designed to keep dogs from shedding their hair even after one use. When the veterinarian uses the shampoo, the dogs he uses the shampoo on continue to shed. Did the sample create any warranty?

Accepted Answer

A)  No, because the sample was just an example of puffing. 
B)  No, because the sample did not claim to make representations. 
C)  No, because express warranties must be written and not oral. 
D)  No, but the sample created an implied warranty. 
E)  Yes, a sample or model may provide an express warranty. 
A)  No, because the sample was just an example of puffing. 
B)  No, because the sample did not claim to make representations. 
C)  No, because express warranties must be written and not oral. 
D)  No, but the sample created an implied warranty. 
E)  Yes, a sample or model may provide an express warranty.

Question 14

________ are simply exaggerations made by a salesperson and do not create a warranty.

Accepted Answer

A)  Puffing 
B)  Falsehoods 
C)  Innocent misrepresentations 
D)  Fraudulent misrepresentations 
E)  Negligent misrepresentations 
A)  Puffing 
B)  Falsehoods 
C)  Innocent misrepresentations 
D)  Fraudulent misrepresentations 
E)  Negligent misrepresentations

Question 15

Which of the following is true regarding disclaimers of the implied warranty of merchantability?

Accepted Answer

A)  Any attempt to disclaim the implied warranty of merchantability is per se unconscionable, but a court will enforce the disclaimer if the buyer is another merchant and is fully informed of the disclaimer. 
B)  Any attempt to disclaim the implied warranty of merchantability is per se unconscionable, and a court will refuse to enforce the disclaimer. 
C)  Under some situations, a disclaimer of the implied warranty of merchantability may be made within 10 days after a sale. 
D)  A disclaimer of the implied warranty of merchantability may be done orally. 
E)  By federal law, there is no requirement that the term "merchantability" be used in any disclaimer. 
A)  Any attempt to disclaim the implied warranty of merchantability is per se unconscionable, but a court will enforce the disclaimer if the buyer is another merchant and is fully informed of the disclaimer. 
B)  Any attempt to disclaim the implied warranty of merchantability is per se unconscionable, and a court will refuse to enforce the disclaimer. 
C)  Under some situations, a disclaimer of the implied warranty of merchantability may be made within 10 days after a sale. 
D)  A disclaimer of the implied warranty of merchantability may be done orally. 
E)  By federal law, there is no requirement that the term "merchantability" be used in any disclaimer.

Question 16

Warranties of assignability under common law are the only warranties that are ________.

Accepted Answer

A)  availability warranties. 
B)  for particular purposes. 
C)  implied warranties. 
D)  considered good title. 
E)  only allowed for goods over $10,000. 
A)  availability warranties. 
B)  for particular purposes. 
C)  implied warranties. 
D)  considered good title. 
E)  only allowed for goods over $10,000.

Question 17

Troy and Elizabeth are arguing over the rights of sellers and their warranties. Elizabeth tells Troy that the primary codification of both state and federal laws regarding sellers' warranties is found in the UCC. Is she correct?

Accepted Answer

A)  Yes, seller warranties are found in the UCC. 
B)  No, seller warranties are found in the Restatement of Contracts. 
C)  No, seller warranties are found in the Magnuson-Moss Act. 
D)  No, seller warranties are found in the Consumer Warranty and Protection Act. 
E)  No, seller warranties are found in the Consumer Rights Protection Act of 1976. 
A)  Yes, seller warranties are found in the UCC. 
B)  No, seller warranties are found in the Restatement of Contracts. 
C)  No, seller warranties are found in the Magnuson-Moss Act. 
D)  No, seller warranties are found in the Consumer Warranty and Protection Act. 
E)  No, seller warranties are found in the Consumer Rights Protection Act of 1976.

Question 18

Which of the following is true regarding whether Nicole made an express warranty to Cara that the blender would make smoothies?

Accepted Answer

A)  Nicole made an express warranty by not speaking up regarding the blender's power. 
B)  Nicole made an express warranty by not speaking up regarding the blender's power only if Cara can prove that Nicole knew it was not a high-power blender. 
C)  Nicole made an express warranty by not speaking up regarding the blender's power only if Cara can prove that Nicole knew she wanted to make smoothies. 
D)  Nicole made an express warranty by not speaking up regarding the blender's power only if Nicole can prove that she, Nicole, was unaware that the blender was not a high-power blender. 
E)  Nicole did not make an express warranty. 
A)  Nicole made an express warranty by not speaking up regarding the blender's power. 
B)  Nicole made an express warranty by not speaking up regarding the blender's power only if Cara can prove that Nicole knew it was not a high-power blender. 
C)  Nicole made an express warranty by not speaking up regarding the blender's power only if Cara can prove that Nicole knew she wanted to make smoothies. 
D)  Nicole made an express warranty by not speaking up regarding the blender's power only if Nicole can prove that she, Nicole, was unaware that the blender was not a high-power blender. 
E)  Nicole did not make an express warranty.

Question 19

Samples or models cannot provide an express warranty because they are not original product.

Accepted Answer

A) True 
 B)False

Question 20

Which is a true statement regarding a buyer's right to waive warranties?

Accepted Answer

A)  A buyer may not waive warranties. 
B)  A buyer may waive implied warranties but not express warranties. 
C)  A buyer may waive express warranties but not implied warranties. 
D)  A buyer may waive both express warranties and implied warranties. 
E)  A buyer may waive express warranties and the implied warranty of fitness for a particular purpose, but not the implied warranty of merchantability. 
A)  A buyer may not waive warranties. 
B)  A buyer may waive implied warranties but not express warranties. 
C)  A buyer may waive express warranties but not implied warranties. 
D)  A buyer may waive both express warranties and implied warranties. 
E)  A buyer may waive express warranties and the implied warranty of fitness for a particular purpose, but not the implied warranty of merchantability.

Exam 25: Warranties

Any description of the good's physical nature or its use, either in general or specific circumstances, that becomes part of the contract is called an express warranty.

List the circumstances under which an implied warranty of fitness for a particular purpose will be found.

Joseph decides he no longer needs his matching couch and loveseat that both have pull-out beds in them. Joseph's next door neighbor buys Joseph's furniture for $1,500. Does an implied warranty of merchantability apply in this case?

The UCC does not permit buyers to recover from sellers who have breached warranties of title.

According to the UCC, what needs to be shown for goods to be found merchantable?

Western law's "warranty" is referred to as a pledge in the country of ________.

Theilan and Wayland are merchants negotiating contract terms under a contract that will be governed by the UCC. What is the shortest possible statute of limitations for bringing a lawsuit based on breach of contract?

Is the manager correct that the store never offers express or implied warranties on products?

A breach of ________ occurs if it is generally accepted in the trade that a certain product is always preassembled and the seller does not deliver the goods in that condition.

An advertisement in a car magazine states that "this motor oil will keep your engine cleaner than any other motor oil on the market. We guarantee this or your money back." This statement is an example of:

A salesperson gives a veterinarian a sample of dog shampoo that is designed to keep dogs from shedding their hair even after one use. When the veterinarian uses the shampoo, the dogs he uses the shampoo on continue to shed. Did the sample create any warranty?

________ are simply exaggerations made by a salesperson and do not create a warranty.

Which of the following is true regarding disclaimers of the implied warranty of merchantability?

Warranties of assignability under common law are the only warranties that are ________.

Troy and Elizabeth are arguing over the rights of sellers and their warranties. Elizabeth tells Troy that the primary codification of both state and federal laws regarding sellers' warranties is found in the UCC. Is she correct?

Which of the following is true regarding whether Nicole made an express warranty to Cara that the blender would make smoothies?

Samples or models cannot provide an express warranty because they are not original product.

Which is a true statement regarding a buyer's right to waive warranties?

An Introduction to Dynamic Business Law

Business Ethics

The Us Legal System

Alternative Dispute Resolution

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Introduction to Contracts

Agreement

Consideration

Capacity and Legality

Legal Assent

Contracts in Writing

Third-Party Rights to Contracts

Discharge and Remedies

Introduction to Sales and Lease Contracts

Title, Risk of Loss, and Insurable Interest

Performance and Obligations Under Sales and Leases

Remedies for Breach of Sales and Lease Contracts

Negotiable Instruments: Negotiability and Transferability

Negotiation, Holder in Due Course, and Defenses

Liability, Defenses, and Discharge

Checks and Electronic Fund Transfers

Secured Transactions

Other Creditors Remedies and Suretyship

Bankruptcy and Reorganization

Agency Formation and Duties

Liability to Third Parties and Termination

Forms of Business Organization

Partnerships: Nature, Formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, Officers, and Shareholders

Corporations: Mergers, Consolidations, Terminations

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

The Nature of Property, Personal Property, and Bailments

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

Filters