Question 1

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

Accepted Answer

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

Question 2

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

Accepted Answer

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

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 ________.

Accepted Answer

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

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Express warranties are always implied by law.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following would constitute an implied warranty?

Accepted Answer

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 
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 9

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?

Accepted Answer

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

Question 10

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

Accepted Answer

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

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true about express warranties?

Accepted Answer

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. 
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 13

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?

Accepted Answer

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

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Given an account of the different types of warranty disclaimers.

Accepted Answer

The first type is the "as is" disclaimer

Question 16

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

Accepted Answer

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 
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 17

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

Accepted Answer

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

Question 18

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

Accepted Answer

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. 
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 19

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.

Accepted Answer

A) True 
 B)False

Question 20

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?

Accepted Answer

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

Exam 21: Warranties

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

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

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

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

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 ________.

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

Express warranties are always implied by law.

Which of the following would constitute an implied warranty?

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

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

Which of the following is true about express warranties?

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?

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

Given an account of the different types of warranty disclaimers.

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

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

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

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.

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