Exam 16: Sales and Lease Contracts: Performance, Warranties, and Remedies

Which of the following is generally true regarding a liquidated-damage clause?

Under Uniform Commercial Code Sections 2-508 and 2A-513,sellers and lessors have the right to fix problems with nonconforming goods.This is known as the right to an accord and satisfaction.

New Furniture.Penny purchased $3,000 worth of furniture from Bob's furniture shop.Through an arrangement with Bob,Penny financed the purchase through a financing company called Let Us Help You.Twenty-nine days after the goods were delivered to her,Penny had a disagreement with Let Us Help You regarding the amount of interest she would be required to pay.She notified Bob on that day that she was rejecting the goods.Bob claimed that she did not properly reject the furniture and also that she acted in bad faith.Penny says that she properly rejected and denies that she acted in bad faith.She also says that,in any event,she cannot be sued for both wrongful rejection and also bad faith because of double jeopardy.Which of the following is true regarding the standard of good faith that would be applied regarding Penny?

Hot Toaster.Rebecca bought a toaster from Super Store and brought it home.A friend of hers,Greg,was at her house making toast.The toaster malfunctioned and shocked Greg,resulting in a small burn to his hand requiring medical attention.At a garage sale,Rebecca also purchased a blender from a friend,Samantha.When she paid for the blender,Rebecca said that it would be great for making smoothies.Samantha said nothing and just smiled while taking Rebecca's money.Unfortunately,the blender was not powerful enough to make smoothies.Based on the facts presented,what type of warranty did Super Store give Rebecca?

Hot Toaster.Rebecca bought a toaster from Super Store and brought it home.A friend of hers,Greg,was at her house making toast.The toaster malfunctioned and shocked Greg,resulting in a small burn to his hand requiring medical attention.At a garage sale,Rebecca also purchased a blender from a friend,Samantha.When she paid for the blender,Rebecca said that it would be great for making smoothies.Samantha said nothing and just smiled while taking Rebecca's money.Unfortunately,the blender was not powerful enough to make smoothies.Which of the following is true regarding whether Samantha made an implied warranty of fitness for a particular purpose to Rebecca that the blender would make smoothies?

Uniform Commercial Code Section 1-205(1)defines ________ as previous commercial transactions between the same parties.

New Furniture.Penny purchased $3,000 worth of furniture from Bob's furniture shop.Through an arrangement with Bob,Penny financed the purchase through a financing company called Let Us Help You.Twenty-nine days after the goods were delivered to her,Penny had a disagreement with Let Us Help You regarding the amount of interest she would be required to pay.She notified Bob on that day that she was rejecting the goods.Bob claimed that she did not properly reject the furniture and also that she acted in bad faith.Penny says that she properly rejected and denies that she acted in bad faith.She also says that,in any event,she cannot be sued for both wrongful rejection and also bad faith because of double jeopardy.Which of the following is the correct analysis of Penny's claim that she cannot be sued for both a wrongful rejection and bad faith because of the constitutional prohibition against double jeopardy?

If a buyer accepts nonconforming goods,the buyer may not seek damages.

Ann chipped a tooth on a peach pit while eating a can of mixed fruit.She wants to sue the manufacturer of the fruit mix.Which of the following would be the manufacturer's best defense?

The Uniform Commercial Code assumes that the seller has the right to transfer title free and clear of any liens,judgments,or infringement of intellectual property rights of which the buyer does not have knowledge.

At common law,the obligations and responsibilities of the contractual parties are determined by the express terms of the contract.

Which of the following is required by the Magnuson-Moss Act when the seller issues a written warranty for a consumer good?

Which of the following is true under the Magnuson-Moss Act if a written warranty is silent as to whether or not it is a full warranty?

A common law standard known as ________ requires that the seller deliver goods in conformity with the terms of the contract,right down to the last detail.

Unless the parties have agreed otherwise,the buyer or lessee typically inspects the goods after paying for them.

Mary sells handmade earrings for a living.Susan is a new lawyer and a friend of Mary who gives legal advice to Mary in return for earrings.Susan tells Mary that under the Magnuson-Moss Act she is required to provide all buyers with a written warranty setting forth their rights as consumers.Mary asks if there is not a way around that because she is tired of complaining customers who do not take care of their earrings and that she would love to find a way to provide no warranties whatsoever.Which of the following is true regarding Susan's advice and warranties on the earrings?

If it is generally accepted in the trade that a certain product is always preassembled and shrink-wrapped,the failure of the seller to deliver the goods in that condition would be a breach of the ________.

Sally,who has a candy shop,agreed to sell Ricky,a teacher,all the chocolate candy bears in her shop for treats for his class.Unfortunately,through no fault of hers,Sally's air conditioner went out and half of the bears partially melted.What are the rights and duties of the parties in relation to the contract?

New Furniture.Penny purchased $3,000 worth of furniture from Bob's furniture shop.Through an arrangement with Bob,Penny financed the purchase through a financing company called Let Us Help You.Twenty-nine days after the goods were delivered to her,Penny had a disagreement with Let Us Help You regarding the amount of interest she would be required to pay.She notified Bob on that day that she was rejecting the goods.Bob claimed that she did not properly reject the furniture and also that she acted in bad faith.Penny says that she properly rejected and denies that she acted in bad faith.She also says that,in any event,she cannot be sued for with both wrongful rejection and also bad faith because of double jeopardy.Which of the following is true regarding Bob's claim that Penny failed to properly reject the goods?

Which of the following was the result on appeal in Webster v.Blue Ship Tea Room,Inc.,the case in the textbook in which the plaintiff sued after getting a bone caught in her throat while eating New England seafood chowder?