Deck 23: Warranties

Question 1

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.

Answer 1

True

Question 2

Every sale or lease of goods made by a merchant who deals in goods of the kind sold or leased automatically gives rise to an implied warranty that the goods are fit for a particular purpose.

Answer 2

False

Question 3

Goods must be of the highest quality possible to be merchantable.

Answer 3

False

Question 4

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

Question 5

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

Question 6

General descriptions take precedence over inconsistent samples.

Question 7

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

Question 8

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

Question 9

To constitute an express warranty, a representation must be in writing.

Question 10

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

Question 11

An expression of opinion will usually create a warranty.

Question 12

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

Question 13

A warranty of title cannot be disclaimed.

Question 14

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

Question 15

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

Question 16

Warranties of title do not arise in most sales contracts.

Question 17

Express warranties displace inconsistent implied warranties with no exception.

Question 18

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

Question 19

A seller who makes a statement that relates to the value or worth of the goods creates an express warranty.

Question 20

A warranty of good title means that a seller warrants that he or she has valid title to the goods and that transfer of the title is rightful.

Question 21

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 22

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

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

Question 23

Riverside Ranch is a horse breeding facility. Steed Stables is a customer looking for a new stallion for its breeding program. Riverside's representative Tomas shows Steed a stallion that he says is very fertile and can easily breed twenty mares per year. This statement is

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

Question 24

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

A) automatically.
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 25

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 26

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.
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 27

Watercourse 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 28

Rita eats Salsa Caliente made and sold by Salsa Zest Corporation and becomes ill. Rita files a suit against Salsa Zest, alleging that its product was not merchantable. Merchantable food is food that is fit to eat on the basis of

A) consumer expectations.
B) what constitutes a perfect condition.
C) its maker's intentions.
D) its producer's experience.

Question 29

Regal Autos, Inc., sells cars to consumers. To avoid liability for oral ex?press warranties, each Regal 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 30

Chord Guitars Inc. sells guitars and other stringed instruments to consumers. A Chord salesperson says to a potential customer, "This Chord is the best guitar you'll find anywhere, even online." 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 31

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 32

Medical Equipment Supply Company and Natural Rehabilitation Center enter into a contract for a lease of a certain number of wheelchairs. Medical Equipment assures the lessee that it has valid title to the goods. Under the UCC, this type of title warranty arises

A) automatically.
B) only if the buyer asks for such a warranty.
C) only if the seller expresses such a warranty.
D) only if the seller actually has valid title to the goods.

Question 33

Freddi buys bike shoes from Get n' Gear Store, telling the clerk that she wants the shoes to compete in High Pace Triathlon. The shoes break apart during the competition, caus?ing Freddi to be injured in a fall. Get n' Gear most likely breached

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

Question 34

Livestock Feedlot orders one hundred sacks of cattle feed from MegaNutrient Feed, Inc. Each sack is stamped with the phrase "Twenty percent protein." This is

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

Question 35

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 36

Aerospace, Inc., makes and sells flight navigation equipment, through inde?pendent 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 37

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) an opinion.
D) puffery.

Question 38

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 39

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 40

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 41

Equipment Manufacturing Company tells First Choice Supplies, Inc., that it needs an adhesive to do a particular job. First Choice provides a certain brand. When it does not perform to Equipment Manufacturing's speci?fications, Equipment Manufacturing sues First Choice, which claims, "We didn't expressly promise anything." What should Equipment Manufacturing argue?

Question 42

Stella bought a cup of coffee at the Roasted Bean Drive-Thru. The coffee had been heated to 190 degrees and consequently had dissolved the inside of the cup. When Stella lifted the lid, the cup collapsed, spilling the contents on her lap. To recover for third-degree burns on her thighs, Stella filed a suit against the Roasted Bean. Can Stella recover for breach of warranty? Explain.