Deck 23: Warranties

Question 1

Express warranties can be found in a seller's samples.

Answer 1

True

Question 2

If a warranty of infringement is breached and the buyer is sued by the claim holder, the buyer need not notify the seller of the lawsuit.

Answer 2

False

Question 3

A breach of warranty is a breach of the seller's or lessor's promise.

Answer 3

True

Question 4

Only a statement made after a contract is entered into can be an express warranty.

Question 5

​To specifically disclaim an express warranty, a seller or lessor must mention the word express.

Question 6

A warranty against infringement is a promise by the seller that the product is free from any patent, trademark, or copyright claims of a third person.

Question 7

To be merchantable, goods must be at least average, fair, or medium-grade quality.

Question 8

To specifically disclaim an implied warranty of merchantability, a seller or lessor must mention the word merchantability.

Question 9

Statements of fact made during the bargaining process are express warranties.

Question 10

In sales law, a warranty is an assurance by the seller or lessor about the quality and features of the goods being sold or leased.

Question 11

Federal law imposes no requirements on warranties.​

Question 12

A warranty of title cannot be disclaimed.

Question 13

Statements of opinion and value usually create express warranties.​

Question 14

Statements of fact made during the bargaining process are express warranties.

Question 15

A product is unmerchantable if an accident could arise in connection with the goods.

Question 16

If a seller or lessor breaches a warranty, the buyer or lessee can sue to recover damages.

Question 17

A seller or lessor can disclaim all oral express warranties by including in the contract a written disclaimer.

Question 18

Implied warranties can arise from a "usage of trade."​

Question 19

Puffery is an expert's opinion that creates an express warranty.

Question 20

Every sale or lease by a merchant who deals in goods of the kind sold or leased automatically gives rise to an implied warranty of merchantability.

Question 21

A seller is not required to give a written warranty for consumer goods sold.

Question 22

Merchants are absolute insurers against all accidents arising in connection with the goods.

Question 23

Global Talk Corporation sells phones and other mobile devices. Under most circumstances, Global Talk will be presumed to have warranted that its title to the goods is

A) ​the same as each brand's name.
B) ​none of the choices-a warranty of title is not presumed.
C) ​good and valid.
D) ​the best that money can buy.

Question 24

A statute of limitation may restrict the time within which an action for breach of warranty may be brought.

Question 25

Generally, the implied warranties of merchantability and fitness for a particular purpose cannot be disclaimed.

Question 26

Greg, a salesperson for Home Improvement Center, tells Irena, "This is the best floor sander I've ever seen." This statement is

A) ​an express warranty.
B) ​an implied warranty.
C) ​a warranty of title.
D) ​puffery.

Question 27

Phoenix, a salesperson for Quality Fruit, Inc., shows Robert, a buyer for Sweet Home Fruit Company, samples of peaches, stating that any shipment will match the samples. This statement is

A) ​an express warranty.
B) ​an implied warranty.
C) ​a warranty of title.
D) ​puffery.

Question 28

In sales law, failing to examine the goods and refusing to examine the goods are considered the same thing.

Question 29

General descriptions take precedence over inconsistent samples.

Question 30

Basically, state lemon laws provide remedies to consumers who buy food that is not merchantable.

Question 31

An implied warranty or merchantability and an implied warranty of fitness for a particular purpose cannot exist in a single transaction.

Question 32

Express warranties displace inconsistent implied warranties with no exception.

Question 33

Vehicle Wholesale Company and Walt's Retail Motors enter into a contract for a sale of used cars. Vehicle Wholesale assures Walt's that it has valid title to the vehicles. Under the UCC, warranties of title arise

A) ​automatically in most sales contracts.
B) ​only if the buyer asks for such a warranty.
C) ​only if the seller expresses such a warranty.
D) ​only in conjunction with lease contracts, not sales contracts.

Question 34

A full warranty requires free repair or replacement of any defective part.

Question 35

Merchants are not required to warrant that the goods they sell are fit for their ordinary purpose.

Question 36

To specifically disclaim an implied warranty of fitness for a particular purpose, a seller or lessor must mention the word fitness.

Question 37

If a buyer or lessee examines the goods, there is no implied warranty with respect to defects that a reasonable examination would reveal.

Question 38

Store Outfitters Company and Towncraft retail stores enter into a contract for a lease of cash registers. Store Outfitters assures Towncraft that it has valid title to the goods. Under the UCC, a warranty of title arises

A) ​automatically in most lease contracts.
B) ​only if the lessee asks for such a warranty.
C) ​only if the lessor expresses such a warranty.
D) ​only in conjunction with sales contracts, not lease contracts.

Question 39

If warranties are inconsistent, implied warranties displace express warranties.

Question 40

An action for breach of warranty accrues when the seller or lessor tenders delivery.

Question 41

Wheels Inc. sells bicycles. Under most circumstances, Wheels will be presumed to have warranted that its title to the bikes is

A) ​the same as each brand's name.
B) ​none of the choices-a warranty of title is not presumed.
C) ​good and valid.
D) ​the best that money can buy.

Question 42

Arnold buys a backhoe from Big Dig Equipment Inc. Arnold is unaware that Credit Collection Company holds a lien against the backhoe when he buys it. If Credit Collection repossesses the backhoe, Arnold can​

A) ​recover from Big Dig for breach of warranty.
B) ​do nothing.
C) ​file criminal charges against Big Dig and Credit Collection.
D) ​recover damages from Credit Collection for breach of warranty.

Question 43

Lighter Than Air, Inc., and Mario enter into a contract for a sale of a hang glider. Lighter Than Air, a merchant who deals in goods of the kind sold, makes implied and express warranties in connection with the sale. The Magnuson-Moss Warranty Act was designed to prevent deception in warranties by

A) ​displacing the UCC as the primary source of warranty rules.
B) ​making warranties easier to understand.
C) ​prohibiting disclaimers of warranties.
D) ​requiring sellers to give written warranties for consumer goods.

Question 44

​Kanye goes to a Lawn & Yard store to tune up his mower. Marty, the service technician, learns that Kanye's lawn is overgrown and rocky, and advises the use of a certain type of oil, plug, filter, and blade. Later, the mower breaks down due to the use of the items recommended by Marty. Kanye may recover from Lawn & Garden for breach of

A) ​an express warranty.
B) ​an implied warranty of fitness for a particular purpose.
C) an implied warranty of merchantability.​
D) ​none of the choices.

Question 45

Drive-Away Autos, Inc., sells cars to consumers. To avoid liability for oral express warranties, each Drive-Away sales agreement should note that a car is sold

A) ​as is.
B) ​in perfect condition.
C) ​subject to warranties included in the written contract only.
D) ​with no known defects.

Question 46

Replay Sports Stores and SportsPower Products, Inc., enter into a contract for a sale of trampolines. SportsPower Products is a merchant who deals in goods of the kind sold. Under the UCC, an implied warranty of merchantability arises

A) ​automatically in most contracts for a sale of goods.
B) ​only if the buyer asks for such a warranty.
C) ​only if the seller expresses such a warranty.
D) ​only in conjunction with lease contracts, not sales contracts.

Question 47

Home Remodelers, Inc., and Imogen enter into a contract for a sale of cabinets and countertops. Home Remodelers, a merchant who deals in goods of the kind sold, notes that its goods come with an implied warranty of merchantability. Under the UCC, this means that the goods are reasonably

A) ​fit for the buyer's particular purpose.
B) ​fit for the ordinary purpose for which such goods are used.
C) ​suitable for resale at an acceptable price.
D) ​the best quality that money can buy.

Question 48

Pat's Pet Houses, Inc. sells shelters for animals under "limited" warranties. Under the Magnuson-Moss Warranty Act, this means that the warranties on the shelters from Pat's

A) ​limit the buyers' recourse in some fashion.
B) ​are only good for some buyers.
C) ​cover only some of the shelters.
D) ​are oral instead of written.

Question 49

Band Instruments, Inc., sells seventy-six trombones to Community & School Band Source, Inc. To avoid liability for most implied warranties, Band Instruments should state in writing that the trombones are sold

A) ​as is.
B) ​by a merchant.
C) ​in perfect condition.
D) ​with no known defects.

Question 50

Construction Products Company and Dante enter into a contract for a sale of bricks and stones. Construction Products knows the purpose for which Dante will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises

A) ​if the buyer is relying on the seller to select suitable goods.
B) ​if the buyer asks for it.
C) ​if the seller is a merchant who deals in goods of the kind sold.
D) ​in conjunction with lease contracts, not sales contracts.

Question 51

Water Pipe Company includes in its contracts a provision that reads, in large red letters, "There are no warranties that extend beyond the description on the face hereof." This disclaimer negates

A) ​the implied warranty of fitness for a particular purpose.
B) ​the implied warranty of merchantability.
C) ​the implied warranty of title.
D) ​none of the choices.

Question 52

Eliza buys a new motorcycle from Fab Cycles, Inc. The most important factor in determining whether an express warranty is created is whether

A) ​Eliza expresses to Fab Cycles what she wants warranted.
B) ​Eliza's desire for the cycle becomes part of her motivation to deal.
C) ​Fab Cycles expresses to Eliza what it expects of its customers.
D) ​Fab Cycles's promise becomes part of the basis of the bargain.

Question 53

Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis, they snap in two. The cause is something that Beginners Run did not know about and could not have discovered. Beginners Run breached

A) ​the merchant's implied duty of inspection.
B) ​the implied warranty of merchantability.
C) ​no duty or warranty because Beginners Run knew nothing about the defect that made the goods unsafe.
D) no duty or warranty because consumers should reasonably expect to occasionally find a product that does not work as warranted.

Question 54

Quade is an expert in twentieth-century art. Rachel visits Quade's gallery, seeking to buy artwork as an investment. Quade shows her a painting that in his opinion is by Picasso. Quade's statement is

A) ​an express warranty.
B) ​an implied warranty.
C) ​a warranty of title.
D) ​puffery.

Question 55

Chord Guitars Inc. sells guitars to consumers. A Chord salesperson says to a potential customer, "This Chord is the best guitar you'll find anywhere." This statement is

A) ​an implied warranty of fitness for a particular purpose.
B) ​an implied warranty of merchantability.
C) ​an express warranty.
D) ​puffery.

Question 56

Trucks & Trailers, Inc. (T&T), and United Express Service enter into a contract for a lease of vehicles. T&T is a merchant who deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises

A) automatically in most contracts for a lease of goods.​
B) ​only if the lessee asks for it.
C) ​only if the lessor expresses such a warranty.
D) ​only in conjunction with sales, not lease, contracts.

Question 57

Riverside Mill and Standard Contractors enter into a contract for a sale of lumber. The mill knows the purpose for which the buyer will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises​

A) ​if the buyer is relying on the seller to select suitable goods.
B) ​if the buyer asks for it.
C) ​if the seller is a merchant who deals in goods of the kind sold.
D) ​in conjunction with lease contracts, not sales contracts.

Question 58

MotorCo Inc. makes and sells auto parts to retail repair services, vehicle sales outlets, and consumer parts stores. On one MotorCo box is a label that reads "Contains one gross (144) sparkplugs, assorted sizes." This statement is

A) ​an implied warranty of fitness for a particular purpose.
B) ​an implied warranty of merchantability.
C) ​an express warranty.
D) ​none of the choices.

Question 59

Fred buys running shoes from Gear Store, telling the clerk that he wants the shoes to compete in High Pace Triathlon. The shoes break apart during the competition, causing Fred to fall and sustain an injury. The seller most likely breached

A) ​an express warranty.
B) ​an implied warranty of fitness for a particular purpose.
C) ​an implied warranty of merchantability.
D) ​none of the choices.

Question 60

HandiTools, Inc., sells power tools, power tool parts, and related supplies under "full" warranties. Under the Magnuson-Moss Warranty Act, this means that HandiTools must provide

A) ​free repair or replacement of any defective part.
B) ​a toll-free number for a HandiTools-approved service company.
C) ​a complete catalog of products and parts available for sale.
D) ​repair or replacement of any defective part at a reduced charge.

Question 61

Grande Floors, Inc., and Home Decor Stores enter into a contract for a sale of carpeting. Grande Floors, a merchant who deals in goods of the kind sold, makes express warranties in connection with the sale. Under the UCC, at the time a contract is formed, an express warranty can be disclaimed or modified

A) by clear, conspicuous language called to the buyer's attention.​
B) ​by implied affirmations of fact relating to the goods.
C) ​in any way that the seller sees fit for the ordinary purpose.
D) ​in no way.

Question 62

Aerospace, Inc., makes and sells flight navigation equipment, through independent salespersons, to retailers for resale to consumers. The Magnuson-Moss Warranty Act covers

A) ​implied warranties, oral statements, and written promises.
B) ​only implied warranties that consumers are aware of.
C) ​only a salesperson's oral statements.
D) ​only a seller's written promises.

Question 63

Clark purchases a new car from Dicey's Deals. The retail installment contract states immediately above the buyer's signature in large, bold type: "There are no warranties that extend beyond the description on the face hereof" and "There are no express warranties that accompany this sale unless expressly written in this contract." Before purchasing the car, Clark specifically informed Dicey's salesperson that he wanted a car that could be driven in a dusty area without needing mechanical repairs. Dicey's salesperson said to Clark, "Nothing will go wrong with this car, but if it does, return it to us, and we will repair it without cost to you." Neither this statement nor any similar statement appears in the retail sales contract. Clark drives the car into a dust storm. The air filter gets plugged up, and the car engine overheats, causing motor damage. Dicey's refuses to repair the engine under any warranty. Clark claims that Dicey's is liable for breach of the implied warranty of fitness for a particular purpose, that the Magnuson-Moss Warranty Act prohibits disclaiming this implied warranty, and that the salesperson's express warranty has also been breached. What are the problems with Clark's claims?

Question 64

Langston steals from MindGames, Inc., ten game players, which Langston sells to Nu2U Games store. Unaware that the players are stolen, Nu2U reconditions them and sells them to Online Distributors, Inc. With the reconditioned drives, Nu2U gives Online Distributors a written statement that disclaims "any and all warranties." MindGames learns that Online Distributors has the players and demands their return. Online Distributors gives the equipment to MindGames and files a suit against Nu2U. Will Online Distributors succeed in its suit? Why or why not?

Question 65

Sugar & Spice, Inc., and Taste Treats stores enter into a contract for a sale of confections. Sugar & Spice, a merchant who deals in goods of the kind sold, makes express warranties in connection with the sale. Under the UCC, at the time a contract is formed, an express warranty can be disclaimed or modified

A) ​by clear, conspicuous language called to the buyer's attention.
B) ​by implied affirmations of fact relating to the goods.
C) ​in any way that the seller sees fit for the ordinary purpose.
D) ​in no way.

Question 66

Music, Inc., sells fifty MP3 players to Noise Stores, Inc. To avoid liability for most implied warranties, in some states Music could simply state in writing that the players are sold

A) ​as is.
B) ​by a merchant.
C) ​in perfect condition.
D) ​with no known defects.

Question 67

Ocean Vessels, Inc., and Pacific Harbor Company enter into a contract for a sale of a boat. Ocean is a merchant who deals in goods of the kind sold. The goods are defective. Under the UCC, the implied warranty of merchantability is breached

A) ​only if Ocean did not know of and could not have discovered the defect.
B) ​only if Ocean did not know of the defect.
C) ​only if Ocean knew about or could have discovered the defect.
D) ​regardless of what Ocean knew or could have discovered.

Question 68

Marcos buys a pneumatic drill from NuTools Inc. Owen leases a table saw from Piecework Tools Sales & Lease Company. Later, Marcos and Owen become aware of defects in the goods that indicate breaches of warranty. An action for breach of warranty accrues when

A) ​the seller or lessor tenders delivery.
B) ​the buyer or lessee becomes aware of the breach.
C) ​the nonbreaching party notifies the breaching party of the breach.
D) ​four years have passed since the breach occurred.

Question 69

Eden Valley Ranch and Farm Supply Corporation enter into a contract for a sale of fencing materials. Farm Supply, a merchant who deals in goods of the kind, makes implied and express warranties in connection with the sale. Under the UCC, if these are inconsistent

A) ​all implied warranties displace all express warranties.
B) ​all express warranties displace all implied warranties.
C) ​the implied warranty of fitness for a particular purpose takes precedence.
D) ​the implied warranty of merchantability takes precedence.

Question 70

Sigrud buys spiked mountain-climbing shoes from Rockridge Gear store. Rockridge does not know that Sigrud plans to wear the shoes to climb Tower Mountain. When Sigrud is on the mountain, the spikes come out of the shoes, causing her to fall and be injured. Rockridge breached

A) ​an express warranty.
B) ​an implied warranty of fitness for a particular purpose.
C) ​an implied warranty of merchantability.
D) ​none of the choices.

Question 71

Banquet Furnishings, Inc., and Christina enter into a contract for a lease of tables, chairs, and items for a wedding reception. Banquet Furnishings, a merchant who deals in goods of the kind sold, generally describes the goods, details technical specifications, and shows a sample. Under the UCC, if these are inconsistent

A) ​the general description displaces the sample.
B) ​the general description displaces the technical specifications.
C) ​the sample takes precedence over the general description.
D) ​the sample takes precedence over the technical specifications.

Question 72

Safe4U Lenses, Inc., assures ThruVu Optical Company that Safe4U's lenses will not crack within a certain range of pressure. ThruVu buys the lenses to prescribe to its customers. When cracks develop within the stated range, ThruVu files a suit against Safe4U. The court is most likely to rule in favor of

A) ​Safe4U, because its statement was an expression of opinion.
B) ​Safe4U, because ThruVu chose Safe4U's products voluntarily.
C) ​ThruVu, because Safe4U's statement was an express warranty.
D) ​ThruVu, because Safe4U's statement constituted puffery.