Question 1

The Magnuson-Moss Warranty Act does not require a seller or lessor to make an express written warranty.

Accepted Answer

A) True 
 B)False

Question 2

A person selling stolen property would be breaching the warranty of good title.

Accepted Answer

A) True 
 B)False

Question 3

An implied warranty requires that the quality of the goods must pass without objection in the trade.

Accepted Answer

A) True 
 B)False

Question 4

What type of transaction is covered under the Magnuson-Moss Warranty Act?

Accepted Answer

A) consumer transactions 
B) commercial transactions 
C) industrial transactions 
D) governmental transactions 
A) consumer transactions 
B) commercial transactions 
C) industrial transactions 
D) governmental transactions

Question 5

A ________ is a warranty in which sellers of goods warrant that the goods they sell are delivered free from any third-party security interests, liens, or encumbrances that are unknown to the buyer.

Accepted Answer

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

Question 6

What of the following is true of an "as is" disclaimer?

Accepted Answer

A) It disclaims all implied warranties. 
B) It disclaims all express warranties. 
C) It is a type of implied warranty. 
D) It cannot be replaced by another warranty. 
A) It disclaims all implied warranties. 
B) It disclaims all express warranties. 
C) It is a type of implied warranty. 
D) It cannot be replaced by another warranty.

Question 7

The implied warranty of fitness for human consumption would apply to vending machines.

Accepted Answer

A) True 
 B)False

Question 8

The warranty against infringements protects trademarks and copyright claims.

Accepted Answer

A) True 
 B)False

Question 9

What was the doctrine of caveat emptor in sales or lease contracts?

Accepted Answer

A) It was law balanced risk of loss between seller and buyer. 
B) It was a law that stated the risk of loss was completely on the buyer. 
C) It was a law that gave more protection to the buyer in a sales contract. 
D) It was a law that stipulated the issue of warrants in sale or lease transactions. 
A) It was law balanced risk of loss between seller and buyer. 
B) It was a law that stated the risk of loss was completely on the buyer. 
C) It was a law that gave more protection to the buyer in a sales contract. 
D) It was a law that stipulated the issue of warrants in sale or lease transactions.

Question 10

A retailer is not liable for the express warranties made by manufacturers of goods it sells.

Accepted Answer

A) True 
 B)False

Question 11

A seller's or lessor's statement of opinion or commendation of the goods does not create an express warranty.

Accepted Answer

A) True 
 B)False

Question 12

What is the difference between a full warranty and a limited warranty?

Accepted Answer

For a warranty to qualify as a full warr

Question 13

Which of the following is a similarity between the foreign substance food test and the consumer expectation test?

Accepted Answer

A) They are both used to determine a buyer's knowledge of a particular food product. 
B) They are both used to determine a buyer's interest in a particular food product. 
C) They are both part of the implied warranty of fitness for human consumption. 
D) They are both part of the express warranty an eatery provides. 
A) They are both used to determine a buyer's knowledge of a particular food product. 
B) They are both used to determine a buyer's interest in a particular food product. 
C) They are both part of the implied warranty of fitness for human consumption. 
D) They are both part of the express warranty an eatery provides.

Question 14

The implied warranty of fitness for a particular purpose applies only to merchants.

Accepted Answer

A) True 
 B)False

Question 15

Under the consumer expectation test, if a person were injured by eating a nail in a cherry pie, then an implied warranty would be breached.

Accepted Answer

A) True 
 B)False

Question 16

When is a warranty disclaimer considered by courts to be conspicuous?

Accepted Answer

A) when the seller implies the disclaimer 
B) when a reasonable person is able to notice it 
C) when it is present in the contract 
D) when it is expressed and approved by both seller and buyer 
A) when the seller implies the disclaimer 
B) when a reasonable person is able to notice it 
C) when it is present in the contract 
D) when it is expressed and approved by both seller and buyer

Question 17

Warranties are the buyer's or lessee's assurance that the goods meet certain standards.

Accepted Answer

A) True 
 B)False

Question 18

Persons who transfer goods without proper title breach the warranty of quiet possession.

Accepted Answer

A) True 
 B)False

Question 19

A(n)________ is a warranty that applies to food or drink consumed on or off the premises of restaurants, grocery stores, fast-food outlets, and vending machines.

Accepted Answer

A) statement of opinion 
B) express warranty 
C) stamp of approval 
D) implied warranty of fitness for human consumption 
A) statement of opinion 
B) express warranty 
C) stamp of approval 
D) implied warranty of fitness for human consumption

Question 20

Monty, a career criminal, steals a diamond from Prime Cut Jewelers.He then sells it to gemstone jeweler, Adamas.Adamas Jewelers are unaware of the stolen nature of the diamond.If Prime Cut discovers that the diamond is with Adamas, and reclaims the diamond, what warranty breach can Adamas declare to recover from Monty?

Accepted Answer

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

Exam 21: Warranties

The Magnuson-Moss Warranty Act does not require a seller or lessor to make an express written warranty.

A person selling stolen property would be breaching the warranty of good title.

An implied warranty requires that the quality of the goods must pass without objection in the trade.

What type of transaction is covered under the Magnuson-Moss Warranty Act?

A ________ is a warranty in which sellers of goods warrant that the goods they sell are delivered free from any third-party security interests, liens, or encumbrances that are unknown to the buyer.

What of the following is true of an "as is" disclaimer?

The implied warranty of fitness for human consumption would apply to vending machines.

The warranty against infringements protects trademarks and copyright claims.

What was the doctrine of caveat emptor in sales or lease contracts?

A retailer is not liable for the express warranties made by manufacturers of goods it sells.

A seller's or lessor's statement of opinion or commendation of the goods does not create an express warranty.

What is the difference between a full warranty and a limited warranty?

Which of the following is a similarity between the foreign substance food test and the consumer expectation test?

The implied warranty of fitness for a particular purpose applies only to merchants.

Under the consumer expectation test, if a person were injured by eating a nail in a cherry pie, then an implied warranty would be breached.

When is a warranty disclaimer considered by courts to be conspicuous?

Warranties are the buyer's or lessee's assurance that the goods meet certain standards.

Persons who transfer goods without proper title breach the warranty of quiet possession.

A(n)________ is a warranty that applies to food or drink consumed on or off the premises of restaurants, grocery stores, fast-food outlets, and vending machines.

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