Deck 21: Warranties

Question 1

A manufacturer is liable for express warranties made by wholesalers and retailers.

Answer 1

False

Question 2

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

Answer 2

True

Question 3

Under the consumer expectation test,if a person were injured by eating a nail in a cherry pie,then an implied warranty would be breached.

Answer 3

False

Question 4

Implied warranties are expressly stated in the sales or lease contract.

Question 5

An implied warranty of fitness for a particular purpose is breached if the goods do not meet the buyer's or lessee's expressed needs.

Question 6

Express warranties must contain the word "express" in writing to be legitimate.

Question 7

The foreign food test is used to find breaches in implied warranty of fitness for human consumption.

Question 8

Warranties are the buyer's or lessee's assurance that the goods meet certain standards.

Question 9

Under the foreign substance test,if a person were injured by a chicken bone while eating a chicken salad sandwich,then an implied warranty would be breached.

Question 10

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

Question 11

An implied warranty requires that the quality of the goods must pass without objection in the trade.

Question 12

The implied warranty of merchantability warrants that goods must be fit for the ordinary purposes for which they are used.

Question 13

The implied warranty of fitness for human consumption would apply to vending machines.

Question 14

Only written express warranties are valid.

Question 15

Under the foreign substance test,the court asks what a consumer would expect to find or not find in food or drink that he or she consumes.

Question 16

Express warranties are always implied by law.

Question 17

Sellers and lessors are not required to make express warranties.

Question 18

A retailer is not liable for the express warranties made by manufacturers of goods it sells.

Question 19

A seller's or lessor's statement of opinion or commendation of the goods does not create an express warranty.

Question 20

An express warranty is created upon description of the goods.

Question 21

A disclaimer of the implied warranty of merchantability must specifically mention the term merchantability for the implied warranty of merchantability to be disclaimed.

Question 22

The disclaimer of the implied warranty of merchantability must be in writing to be valid.

Question 23

In a limited warranty,the warrantor must guarantee that a defective product will be repaired or replaced free during the warranty period.

Question 24

Implied warranties of quality cannot be disclaimed.

Question 25

Full warranties are implied by law.

Question 26

Persons who transfer goods without proper title breach the warranty of quiet possession.

Question 27

Written disclaimers must be conspicuously displayed to be valid.

Question 28

The implied warranty of fitness for a particular purpose applies only to merchants.

Question 29

What was the doctrine of caveat emptor in sales or lease contracts?

A)It was law balanced risk of loss between seller and buyer.
B)It was a law that stated the risk of loss was completely on the buyer.
C)It was a law that gave more protection to the buyer in a sales contract.
D)It was a law that stipulated the issue of warrants in sale or lease transactions.

Question 30

The Magnuson-Moss Warranty Act does not require a seller or lessor to make an express written warranty.

Question 31

The warranty against infringements protects trademarks and copyright claims.

Question 32

A person selling stolen property would be breaching the warranty of good title.

Question 33

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

Question 34

The warranty of no interference warrants that goods sold are free from any third-party security interests,or encumbrances that are unknown to the buyer.

Question 35

The Magnuson-Moss Warranty Act does not govern warranties of industrial transactions.

Question 36

A ________ is a seller's or lessor's express or implied assurance to a buyer or lessee that the goods sold or leased meet certain quality standards.

A)bond
B)caveat emptor
C)warranty
D)collateral

Question 37

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

Question 38

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.

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

Question 39

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

Question 40

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

Question 41

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?

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 42

A(n)________ is a warranty that arises where a seller or lessor warrants that the goods will meet the buyer's or lessee's expressed needs.

A)disclaimer of the implied warranty of merchantability
B)implied warranty of fitness for a particular purpose
C)implied warranty of fitness for human consumption
D)warranty of good title

Question 43

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

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

Question 44

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 ________.

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

Question 45

In a shipment of containers of widgets,which of the following would be considered an implied warranty?

A)that the seller of the widgets has given an oral approval of the widgets in the containers
B)that the description of the uses of widgets is mentioned in the contract
C)that the widgets are of an even kind,quality,and quantity within each unit
D)that a sample of the widget was given to the buyer for inspection

Question 46

A test to determine merchantability based on unfamiliar objects found in food is known as the ________.

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

Question 47

Which of the following would constitute the creation of an express warranty for goods?

A)description of the goods
B)commendation of the goods
C)prior experience with the goods
D)affirmation of the value of the goods

Question 48

Which of the following is true of how an implied warranty of merchantability is created?

A)It is made by the buyer or lessee.
B)It is implied by law if the seller or lessor is a nonmerchant.
C)It is implied by law if the seller or lessor is a merchant.
D)It has to be explicitly expressed in the contract.

Question 49

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

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

Question 50

Which of the following is true of a statement of opinion?

A)It is a type of guarantee.
B)It is an affirmation of the value of the goods.
C)It is an implied assurance not expressly stated.
D)It is the explicit description of the goods.

Question 51

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

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

Question 52

Which of the following is true about express warranties?

A)A manufacturer is liable for express warranties made by wholesalers.
B)A retailer is liable for the express warranties made by manufacturers of goods it sells.
C)A retailer is not allowed to make warranties on manufacturer goods.
D)A manufacturer is obligated by law to make an express warranty on all its goods.

Question 53

Sam expressed interest in buying a painting from Jasper,who claimed that the painting was a family heirloom.Jasper's asking price was $15,000,but Sam was only willing to offer $13,000.Jasper told him that it was a very old painting worth a fortune and that others would gladly pay $20,000 for it.He also told him that he was only selling it under its market value because he needed the money immediately.He then implied that Sam could sell it for a higher rate if he wanted.
In legal terms,Jasper's words to Sam would be considered as ________.

A)an express warranty
B)an implied warranty of merchantability
C)a statement of opinion
D)an oral contract

Question 54

Which of the following would constitute an implied warranty?

A)affirmation of the facts of the goods
B)description of the goods
C)model or sample of the goods
D)adequate packaging and labeling of the goods

Question 55

A(n)________ is a warranty that applies to food or drink consumed on or off the premises of restaurants,grocery stores,fast-food outlets,and vending machines.

A)statement of opinion
B)express warranty
C)stamp of approval
D)implied warranty of fitness for human consumption

Question 56

A statement that negates express and implied warranties is known as a ________.

A)warranty disclaimer
B)limited warranty
C)warranty infringement
D)warranty of no interference

Question 57

Which of the following is a similarity between the foreign substance food test and the consumer expectation test?

A)They are both used to determine a buyer's knowledge of a particular food product.
B)They are both used to determine a buyer's interest in a particular food product.
C)They are both part of the implied warranty of fitness for human consumption.
D)They are both part of the express warranty an eatery provides.

Question 58

Unless properly disclosed,a warranty that is implied that sold or leased goods are fit for the ordinary purpose for which they are sold or leased,as well as other assurances is known as ________.

A)implied volatility
B)implied cause of action
C)implied assertion
D)implied warranty of merchantability

Question 59

Sam expressed interest in buying a painting from Jasper,who claimed that the painting was a family heirloom.Jasper's asking price was $15,000,but Sam was only willing to offer $13,000.Jasper told him that it was a very old painting worth a fortune and that others would gladly pay $20,000 for it.He also told him that he was only selling it under its market value because he needed the money immediately.He then implied that Sam could sell it for a higher rate if he wanted.
Sam decided to buy the painting for $15,000 on the condition that if he found that the painting was worth less than $15,000,Jasper would have to take the painting back and refund Sam.Which of the following warranties did this sales contract have?

A)an implied warranty of merchantability
B)an express warranty
C)a statement of opinion
D)an implied warranty of fitness

Question 60

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

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

Question 61

What type of transaction is covered under the Magnuson-Moss Warranty Act?

A)consumer transactions
B)commercial transactions
C)industrial transactions
D)governmental transactions

Question 62

Eliza buys a car from TinCar Autos with a warranty that says any defect of the car will be repaired or replaced free for a period of six months after the sale.TinCar Autos has taken security interests in the car.Before completely paying off for the car,Eliza sells the car to Mona for cash.Mona is unaware of the Autos' security interest in the car.After Eliza misses several of her payments,TinCar Autos discovers that Mona has the car,and repossesses the car from her.
An automatic warranty provided by a seller or lessor who is a merchant who regularly deals in goods of the kind sold or leased which warrants that the goods are delivered free of any third-party patent,trademark,or copyright claim is known as ________.

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

Question 63

A warranty in which the seller warrants that he or she has valid title to the goods he or she is selling and that the transfer of title is rightful is known as ________.

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

Question 64

A warranty which guarantees that a defective product will be repaired or replaced free during the warranty period is known as a(n)________.

A)implied warranty
B)full warranty
C)disclaimer warranty
D)limited warranty

Question 65

Eliza buys a car from TinCar Autos with a warranty that says any defect of the car will be repaired or replaced free for a period of six months after the sale.TinCar Autos has taken security interests in the car.Before completely paying off for the car,Eliza sells the car to Mona for cash.Mona is unaware of the Autos' security interest in the car.After Eliza misses several of her payments,TinCar Autos discovers that Mona has the car,and repossesses the car from her.
What kind of warranty did TinCar Autos provide Eliza?

A)limited warranty
B)full warranty
C)warranty of good title
D)warranty of no interference

Question 66

What of the following is true of an "as is" disclaimer?

A)It disclaims all implied warranties.
B)It disclaims all express warranties.
C)It is a type of implied warranty.
D)It cannot be replaced by another warranty.

Question 67

The ________ is a federal statute,passed in 1975,that regulates written warranties on consumer products.

A)Purchaser's Act
B)Industry Loss Warranty Act
C)Magnuson-Moss Warranty Act
D)Consumer Warranty Act

Question 68

Kirsten just bought a car that had a one-year warranty stating that it covered cost of parts,but not labor.It also stated that the automobile warranty only covered the powertrain part of the automobile,and no other part.What kind of warranty did Kirsten's car have?

A)full warranty
B)limited warranty
C)disclaimer warranty
D)implied warranty of fitness for a particular purpose

Question 69

Give an account of express warranties.

Question 70

Which of the following is true for display of warranty disclaimers as ruled by the court?

A)It can be implied as an understanding between the buyer and seller.
B)It should be conspicuous and noticeable.
C)It need only be present in the contract.
D)It must be published in the local newspaper before actually being displayed..

Question 71

A full warranty is an example of a(n)________.

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

Question 72

Monty,a career criminal,steals a diamond from Prime Cut Jewelers.He then sells it to gemstone jeweler,Adamas.Adamas Jewelers are unaware of the stolen nature of the diamond.If Prime Cut discovers that the diamond is with Adamas,and reclaims the diamond,what warranty breach can Adamas declare to recover from Monty?

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

Question 73

Eliza buys a car from TinCar Autos with a warranty that says any defect of the car will be repaired or replaced free for a period of six months after the sale.TinCar Autos has taken security interests in the car.Before completely paying off for the car,Eliza sells the car to Mona for cash.Mona is unaware of the Autos' security interest in the car.After Eliza misses several of her payments,TinCar Autos discovers that Mona has the car,and repossesses the car from her.
Joe's Alternative Realty leased a piece of real estate to WideEye Builders.Whilst still on lease,Joe's Alternative Realty gave that same piece of real estate as security interest to procure a loan from Cloudnine Bank.The real estate,which was collateral,was eventually repossessed by the bank from WideEye Builders,after Joe's Alternative Realty defaulted on their loan payment.What warranty had Joe's Alternative Realty breached with WideEye?

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

Question 74

Eliza buys a car from TinCar Autos with a warranty that says any defect of the car will be repaired or replaced free for a period of six months after the sale.TinCar Autos has taken security interests in the car.Before completely paying off for the car,Eliza sells the car to Mona for cash.Mona is unaware of the Autos' security interest in the car.After Eliza misses several of her payments,TinCar Autos discovers that Mona has the car,and repossesses the car from her.
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 ________.

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

Question 75

What are the damages recoverable for a breach of warranty?

Question 76

When is a warranty disclaimer considered by courts to be conspicuous?

A)when the seller implies the disclaimer
B)when a reasonable person is able to notice it
C)when it is present in the contract
D)when it is expressed and approved by both seller and buyer

Question 77

Eliza buys a car from TinCar Autos with a warranty that says any defect of the car will be repaired or replaced free for a period of six months after the sale.TinCar Autos has taken security interests in the car.Before completely paying off for the car,Eliza sells the car to Mona for cash.Mona is unaware of the Autos' security interest in the car.After Eliza misses several of her payments,TinCar Autos discovers that Mona has the car,and repossesses the car from her.
A ________ is a warranty in which the lessor warrants that no person holds a claim or an interest in the goods that arose from an act or omission of the lessor that will interfere with the lessee's enjoyment of his or her leasehold interest.

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

Question 78

A ________ is a warranty in which sellers of goods warrant that the goods they sell are delivered free from any third-party security interests,liens,or encumbrances that are unknown to the buyer.

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

Question 79

Eliza buys a car from TinCar Autos with a warranty that says any defect of the car will be repaired or replaced free for a period of six months after the sale.TinCar Autos has taken security interests in the car.Before completely paying off for the car,Eliza sells the car to Mona for cash.Mona is unaware of the Autos' security interest in the car.After Eliza misses several of her payments,TinCar Autos discovers that Mona has the car,and repossesses the car from her.
Which warranty breach can Mona assert to recover from Eliza?

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

Question 80

Which of the following is true of the Magnuson-Moss Warranty 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.