Exam 19: Warranties Product Liability and Consumer Protection

The statement of the seller in which the article sold is warranted or guaranteed is known as an implied warranty.

A(n)is one that the seller did not make but that is imposed by the law.

Which of the following is true of a warranty of merchantability?

The warranty against encumbrances applies to the goods only at the time they are delivered to the buyer; it is not concerned with an encumbrance that existed before the sale was made.

A small piece of molded plastic shown to a car buyer to illustrate the materials and methods used in the construction of cars creates a sale by sample.

is information that the law presumes everyone knows by virtue of the fact that it is filed or recorded on the public record.

Which of the following is true of sale of food or drink?

A warranty is an assurance that the article sold will conform to a certain standard or will operate in a certain manner. ​

The requires creditors to notify a potential recipient of credit whenever any adverse action or denial of credit was based on a credit report.

Unless otherwise agreed, a merchant warrants that goods shall be delivered free of the rightful claim of any third person by way of patent or trademark infringement.

An express warranty applies even if defects are actually known to the buyer, or defects are so apparent that no special skill or ability is required to detect them.

The sale of food or drink, to be consumed off the seller's premises, is not a sale.

​ Explain product uniformity.

The statement of the seller in which the article sold is warranted or guaranteed is known as an . ​

Under the Fair Credit Reporting Act, certain types of adverse information may not be maintained in a consumer's credit report for more than seven years.

Implied warranty arises as to fitness of used property for ordinary use from a sale made by a casual seller.

Jack, a second-hand dealer of cars, provides his clients with the opportunity to examine them. Jenny test-drove a car and got it checked by her mechanic as well. However, the mechanic missed a broken valve and the car broke down after the purchase. Which of the following is likely to happen in this scenario?

Which of the following warranties applies to all sellers?

A seller's warranty that the goods shall be delivered free from any security interest or any other lien of which the buyer at the time of making the sales contract had no knowledge is known as a .

The Truth in Lending Act (TILA)was enacted to set safety standards for consumer products.