Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

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

Accepted Answer

A) conditional warranty 
B) express guarantee 
C) limited guarantee 
D) implied warranty D

Question 3

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

Accepted Answer

A) It imposes the duty to employ a particular design, on the merchant, for safety reasons. 
B) Warranty of merchantability exists even after the risk of loss has passed to the buyer. 
C) Warranty of merchantability relates only to the fitness of the product made or sold. 
D) Unless otherwise excluded or modified, merchants do not make an implied warranty of merchantability. C

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

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.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) Instructive notice 
B) Model notice 
C) Constructive notice 
D) Sample notice

Question 7

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

Accepted Answer

A) The seller must always provide an express warranty that the food is fit for consumption. 
B) The seller is always liable   even when a harmful object found in food is   natural to the particular kind of food. 
C) It is not considered as a sale if the purchaser consumes it off the premises. 
D) The sale carries an implied warranty that the food is fit for consumption.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) Sherman Act 
B) Truth in Lending Act 
C) Fair Credit Reporting Act 
D) Mangnuson-Moss Warranty and Federal Trade Commission Improvement Act

Question 10

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.

Accepted Answer

A) True 
 B)False

Question 11

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.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

​ Explain product uniformity.

Accepted Answer

The answer of ​ Explain product uniformity....

Question 14

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

Accepted Answer

A) express warranty 
B) unconditional warranty 
C) universal warranty 
D) express guarantee

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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?

Accepted Answer

A) Jack is exempt from prosecution as the principle of caveat emptor applies. 
B) Jack is responsible for selling a faulty car and can be prosecuted for fraud. 
C) Jenny can claim compensation through courts as per the principle of caveat emptor. 
D) Jack can be prosecuted by the mechanic for misleading him during purchase.

Question 18

Which of the following warranties applies to all sellers?

Accepted Answer

A) warranty of merchantability 
B) warranty of title 
C) warranty against infringement 
D) warranty of fitness for normal use

Question 19

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 .

Accepted Answer

A) warranty against encumbrances 
B) warranty of title 
C) warranty of conformity to a description, sample or model 
D) warranty of fitness for a particular purpose

Question 20

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

Accepted Answer

A) True 
 B)False

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.

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.

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.

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.

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

Explain product uniformity.

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