Question 1

Which of the following is false regarding express warranties?

Accepted Answer

A)   They may be part of a brochure.
B)   They may not arise from a salesperson's oral promise.
C)   A sample may provide an express warranty.
D)   They may be part of a written sales or lease contract.
E)   A model may provide an express warranty.F) A) and B)
G) B) and C)

Question 2

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

Accepted Answer

A)   Implied warranty of merchantability
B)   Implied warranty of fitness for a particular purpose
C)   Implied warranty of trade usage
D)   Express warranty of integrity
E)   Implied warranty of qualityF) A) and E)
G) None of the above C

Question 3

Assurances by one party that the other party can rely on its representations of fact are referred to as which of the following?

Accepted Answer

A)   Consensual promises
B)   Contractual promises
C)   Warranties
D)   Affirmances
E)   EngagementsF) B) and E)
G) All of the above

Question 4

Which of the following is true regarding whether a seller must provide a warranty under the Magnuson-Moss Act?

Accepted Answer

A)   A seller must provide an express, full warranty.
B)   A seller must provide an implied, full warranty.
C)   A seller must provide at least an express, limited warranty.
D)   A seller must provide at least an implied, limited warranty.
E)   The act does not require that the seller provide any warranties.F) A) and E)
G) B) and D)

Question 5

Unless otherwise specified, which of the following is true regarding warranties in Hong Kong?

Accepted Answer

A)   Warranties are not recognized in Hong Kong.
B)   Time of payment and delivery are considered warranties.
C)   Time of payment is considered a warranty, but delivery is not considered a warranty.
D)   Delivery is considered a warranty, but time of payment is not considered a warranty.
E)   Conditions are considered the same as warranties.F) B) and D)
G) B) and C)

Question 6

What is the effect of a failure to comply with the statute of limitations?

Accepted Answer

A)   It operates as a waiver of warranty rights under the contract.
B)   There is no effect so long as the plaintiff can establish that he or she was not aware of the statute of limitations.
C)   It operates as a waiver of warranty rights only if the defendant can establish that the plaintiff had actual knowledge of the statute of limitations.
D)   It results in the plaintiff only having the right to sue for injunctive relief, not damages.
E)   It results in the plaintiff only having the right to sue for damages, not injunctive relief.F) D) and E)
G) C) and D)

Question 7

What needs to be shown under the UCC for goods to be found merchantable?

Accepted Answer

For goods to be merchantable under the U...

Question 8

Which of the following is needed in order for the implied warranty of merchantability to be applied?

Accepted Answer

A)   Both parties must be merchants and a sale, not a lease, must be involved.
B)   Both parties must be merchants, and either a sale or lease must be involved.
C)   The seller must be a merchant and a sale, not a lease, must be involved.
D)   The seller must be a merchant, and either a sale or lease must be involved.
E)   The seller must be a merchant, goods valued at over $500 must be involved, and either a sale or lease must be involved.F) B) and D)
G) B) and E)

Question 9

The UCC assumes that the seller has the right to transfer title free and clear of infringements of intellectual property rights of which the buyer does not have knowledge.

Accepted Answer

A) True 
 B)False

Question 10

Marge ordered for her soccer team T-shirts with the name of the school shown on the front. The seller requested that Marge come in to inspect the first T-shirt before the others were made. Marge refused because she was too busy and told the seller to go ahead and print the shirts. On receipt of the shirts, Marge discovered that the school name was misspelled. Does Marge have any rights against the seller, and why or why not?

Accepted Answer

Marge has no rights against th...

Question 11

What is the warranty of assignability at common law?

Accepted Answer

A)   That when a party "assigns" a contract to another party, the assignor is impliedly providing a warranty of merchantability.
B)   That when a party "assigns" a contract to another party, the assignor is impliedly guaranteeing a warranty of fitness for a particular purpose.
C)   That when a party "assigns" a contract to another party, the assignor is impliedly guaranteeing that the rights being assigned are valid.
D)   That when a party "assigns" a contract to another party, the assignor is expressly guaranteeing a warranty of merchantability for fitness.
E)   That when a party "assigns" a contract to another party, the person being assigned contractual rights expressly agrees to provide consideration.F) A) and B)
G) All of the above

Question 12

"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, a nurse, with the intention of making smoothies. Unfortunately, the blender was not powerful enough to make smoothies. Assume that not all blenders are designed to provide the texture required for good smoothies.
-Which of the following is true regarding whether Samantha made an express warranty to Rebecca that the blender would make smoothies?

Accepted Answer

A)   Samantha made an express warranty by not speaking up regarding the blender's power.
B)   Samantha made an express warranty by not speaking up regarding the blender's power only if Rebecca can prove that Samantha knew it was not a high-power blender.
C)   Samantha made an express warranty by not speaking up regarding the blender's power only if Rebecca can prove that Samantha knew she wanted to make smoothies.
D)   Samantha made an express warranty by not speaking up regarding the blender's power only if Samantha can prove that she, Samantha, was unaware that the blender was not a high-power blender.
E)   Samantha did not make an express warranty.F) B) and E)
G) A) and D)

Question 13

"Boat Tow." Donnie went to a new car dealership and told the salesperson, Sally, who was not the manager, that he needed a new car that would get good gas mileage and would also pull his big boat. Sally encouraged him to buy a smaller car that she promised would pull the boat. Sally was new to the job and did not realize that the small car did not have sufficient power to pull the boat for any distance. Donnie bought the car and used it to pull the boat. Unfortunately, the heavy pull on the car did significant damage to the car's engine. Donnie complained to the Sally who denied any liability. Donnie, who had half a semester of business law, informed Sally that along with the sale of the car he also received an express warranty, an implied warranty of merchantability, and an implied warranty of fitness for a particular purpose; and that he could recover under any of those theories. Sally truthfully said that no explicit promises regarding warranties were ever made orally or in writing.
-Is Donnie correct that the car was sold with an implied warranty of merchantability?

Accepted Answer

A)   No, because there was no writing guaranteeing the warranty signed by the salesperson.
B)   No, because Sally was only engaged in puffing.
C)   No, because only the manager can make such a warranty.
D)   Yes, but only because Sally verbally made certain promises.
E)   Yes, because there was a reasonable expectation of how the vehicle would perform.F) D) and E)
G) C) and E)

Question 14

Which of the following is true regarding whether Samantha made an implied warranty of merchantability in regard to the blender?

Accepted Answer

A)   There is no implied warranty of merchantability because of a lack of evidence that Samantha made any express statements regarding the blender.
B)   There is no implied warranty of merchantability because a consumer appliance was involved.
C)   There is no implied warranty of merchantability because Samantha was not a merchant in respect to consumer appliances.
D)   There was an implied warranty of merchantability because a consumer appliance was involved.
E)   There was an implied warranty of merchantability because no merchant in goods of that type was involved.F) A) and B)
G) D) and E)

Question 15

In order to disclaim the implied warranty of fitness for a particular purpose, the seller must disclaim the warranty in writing.

Accepted Answer

A) True 
 B)False  True

Question 16

To use common law language a[n] ______ is a material term of the sale or lease contract.

Accepted Answer

A)   Express warranty
B)   Implied warranty
C)   Acknowledged warranty
D)   Claimed warranty
E)   Consequential warrantyF) A) and C)
G) B) and E) A

Question 17

Which is true regarding a buyer's right to waive warranties?

Accepted Answer

A)   A buyer may not waive warranties.
B)   A buyer may waive implied warranties but not express warranties.
C)   A buyer may waive express warranties but not implied warranties.
D)   A buyer may waive both express warranties and implied warranties.
E)   A buyer may waive express warranties and the implied warranty of fitness for a particular purpose, but not the implied warranty of merchantability.F) A) and B)
G) None of the above

Question 18

Because of the rule of privity, warranties may not extend to third parties to a contract.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following was the court's ruling on appeal in First State Bank & Trust Company of Shawnee v. Wholesale Enterprises Inc., the case in the text involving whether the implied warranty of title should be extended to subsequent purchasers?

Accepted Answer

A)   That the implied warranty of title did not extend to subsequent purchasers.
B)   That the implied warranty of title did extend to subsequent purchasers.
C)   That the implied warranty of title extended only to subsequent purchasers who purchased within 12 months.
D)   That the implied warranty of title extended only to subsequent purchasers who purchased within 4 years.
E)   That the implied warranty of title extended only to the first three subsequent purchasers, but no further.F) A) and E)
G) B) and E)

Question 20

What was the result in the "Case Opener" in which a purchaser of a puppy from a person who regularly sold puppies sued the seller for veterinarian bills after the puppy was found to be in poor health?

Accepted Answer

A)   The court found that the puppy was not a good covered under the UCC, and the plaintiff was denied recovery.
B)   The court refused any recovery to the plaintiff on the basis that the seller was not considered a merchant under the UCC and that no implied warranties were made.
C)   The buyer in essence had no remedy because the court ruled that the plaintiff's only remedy, which the plaintiff was unwilling to do, was return of the puppy for a refund.
D)   The court allowed the buyer to recover the contract price only, not veterinarian bills.
E)   The court awarded the plaintiff the veterinary bills finding that the UCC applied and that the seller breached the warranty of merchantability.F) B) and E)
G) D) and E)

Exam 25: Warranties

Which of the following is false regarding express warranties?

Correct Answer
verified

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

Correct Answer
verified
C

Assurances by one party that the other party can rely on its representations of fact are referred to as which of the following?

Correct Answer
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Which of the following is true regarding whether a seller must provide a warranty under the Magnuson-Moss Act?

Correct Answer
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Unless otherwise specified, which of the following is true regarding warranties in Hong Kong?

Correct Answer
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What is the effect of a failure to comply with the statute of limitations?

Correct Answer
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What needs to be shown under the UCC for goods to be found merchantable?

Correct Answer
verified
For goods to be merchantable under the U...
View Answer

Which of the following is needed in order for the implied warranty of merchantability to be applied?

Correct Answer
verified

The UCC assumes that the seller has the right to transfer title free and clear of infringements of intellectual property rights of which the buyer does not have knowledge.

Correct Answer
verified

Correct Answer
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Marge has no rights against th...
View Answer

What is the warranty of assignability at common law?

Correct Answer
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Correct Answer
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Correct Answer
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Which of the following is true regarding whether Samantha made an implied warranty of merchantability in regard to the blender?

Correct Answer
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In order to disclaim the implied warranty of fitness for a particular purpose, the seller must disclaim the warranty in writing.

Correct Answer
verified
True

To use common law language a[n] ______ is a material term of the sale or lease contract.

Correct Answer
verified
A

Which is true regarding a buyer's right to waive warranties?

Correct Answer
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Because of the rule of privity, warranties may not extend to third parties to a contract.

Correct Answer
verified

Which of the following was the court's ruling on appeal in First State Bank & Trust Company of Shawnee v. Wholesale Enterprises Inc., the case in the text involving whether the implied warranty of title should be extended to subsequent purchasers?

Correct Answer
verified

What was the result in the "Case Opener" in which a purchaser of a puppy from a person who regularly sold puppies sued the seller for veterinarian bills after the puppy was found to be in poor health?

Correct Answer
verified

Exam 25: Warranties

Which of the following is false regarding express warranties?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedC

Assurances by one party that the other party can rely on its representations of fact are referred to as which of the following?

Correct AnswerverifiedShow Answer

Which of the following is true regarding whether a seller must provide a warranty under the Magnuson-Moss Act?

Correct AnswerverifiedShow Answer

Unless otherwise specified, which of the following is true regarding warranties in Hong Kong?

Correct AnswerverifiedShow Answer

What is the effect of a failure to comply with the statute of limitations?

Correct AnswerverifiedShow Answer

What needs to be shown under the UCC for goods to be found merchantable?

Correct AnswerverifiedFor goods to be merchantable under the U...View AnswerShow Answer

Which of the following is needed in order for the implied warranty of merchantability to be applied?

Correct AnswerverifiedShow Answer

The UCC assumes that the seller has the right to transfer title free and clear of infringements of intellectual property rights of which the buyer does not have knowledge.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedMarge has no rights against th...View AnswerShow Answer

What is the warranty of assignability at common law?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is true regarding whether Samantha made an implied warranty of merchantability in regard to the blender?

Correct AnswerverifiedShow Answer

In order to disclaim the implied warranty of fitness for a particular purpose, the seller must disclaim the warranty in writing.

Correct AnswerverifiedTrue

To use common law language a[n] ______ is a material term of the sale or lease contract.

Correct AnswerverifiedA

Which is true regarding a buyer's right to waive warranties?

Correct AnswerverifiedShow Answer

Because of the rule of privity, warranties may not extend to third parties to a contract.

Correct AnswerverifiedShow Answer

Which of the following was the court's ruling on appeal in First State Bank & Trust Company of Shawnee v. Wholesale Enterprises Inc., the case in the text involving whether the implied warranty of title should be extended to subsequent purchasers?

Correct AnswerverifiedShow Answer

What was the result in the "Case Opener" in which a purchaser of a puppy from a person who regularly sold puppies sued the seller for veterinarian bills after the puppy was found to be in poor health?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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C

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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For goods to be merchantable under the U...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Marge has no rights against th...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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True

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A

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