Question 1

Which of the following is correct with regard to express warranties?

Accepted Answer

A)  Commendations,or puffing,of the goods do not create an express warranty. 
B)  It is always easy to distinguish between a statement of fact and an opinion. 
C)  A statement of the value of goods will create an express warranty. 
D)  Manufacturers are usually liable for express warranties made by retailers. 
A)  Commendations,or puffing,of the goods do not create an express warranty. 
B)  It is always easy to distinguish between a statement of fact and an opinion. 
C)  A statement of the value of goods will create an express warranty. 
D)  Manufacturers are usually liable for express warranties made by retailers. A

Question 2

Which of the following best describes the warranty of title in connection with a leasing transaction?

Accepted Answer

A)  Because ownership does not transfer,there is no warranty of title nor is there any similar warranty. 
B)  For lessees,the warranty of no infringements takes the place of the warranty of title. 
C)  For lessees,the warranty of title is replaced by a warranty against interference. 
D)  In a leasing transaction,the ownership status of the leased property is not of concern to the lessee,thus there is no warranty of title. 
A)  Because ownership does not transfer,there is no warranty of title nor is there any similar warranty. 
B)  For lessees,the warranty of no infringements takes the place of the warranty of title. 
C)  For lessees,the warranty of title is replaced by a warranty against interference. 
D)  In a leasing transaction,the ownership status of the leased property is not of concern to the lessee,thus there is no warranty of title. C

Question 3

A written contract contains an express warranty that the goods will be of "quality grade A." The seller wishes to disclaim this express warranty.How may the seller accomplish this?

Accepted Answer

A)  This express warranty may not be disclaimed. 
B)  By language stating that no warranties,express or implied,are contained in this contract. 
C)  By general language,such as "as is" or "with all faults." 
D)  By specifically mentioning "merchantability." 
A)  This express warranty may not be disclaimed. 
B)  By language stating that no warranties,express or implied,are contained in this contract. 
C)  By general language,such as "as is" or "with all faults." 
D)  By specifically mentioning "merchantability." A

Question 4

Under the implied warranty of merchantability,fungible goods need only meet the highest level of quality.

Accepted Answer

A) True 
 B)False

Question 5

The following will create an express warranty EXCEPT:

Accepted Answer

A)  an affirmation of fact 
B)  a description of the item 
C)  an endorsement by a third party,such as the magazine Consumer Reports 
D)  a sample of the item 
A)  an affirmation of fact 
B)  a description of the item 
C)  an endorsement by a third party,such as the magazine Consumer Reports 
D)  a sample of the item

Question 6

A statement that a trailer has a capacity of 3,000 pounds would be treated as an affirmation of fact and creates a warranty.

Accepted Answer

A) True 
 B)False

Question 7

Steve was eating a chicken salad sandwich at a restaurant and began choking on a chicken bone.Which of the following is correct?

Accepted Answer

A)  Steve would not be able to recover under either the Foreign Substance Test or the Consumer Expectation Test. 
B)  Steve would be able to recover under the Foreign Substance Test,but not the Consumer Expectation Test. 
C)  Steve would not be able to recover under the Foreign Substance Test,but would be able to recover under the Consumer Expectation Test. 
D)  Steve could recover under both the Foreign Substance Test and the Consumer Expectation Test. 
A)  Steve would not be able to recover under either the Foreign Substance Test or the Consumer Expectation Test. 
B)  Steve would be able to recover under the Foreign Substance Test,but not the Consumer Expectation Test. 
C)  Steve would not be able to recover under the Foreign Substance Test,but would be able to recover under the Consumer Expectation Test. 
D)  Steve could recover under both the Foreign Substance Test and the Consumer Expectation Test.

Question 8

Sellers of goods warrant that the goods they sell are delivered free from any third-party security interests.

Accepted Answer

A) True 
 B)False

Question 9

Generally,manufacturers are liable for express warranties made by wholesalers.

Accepted Answer

A) True 
 B)False

Question 10

The statement "This car has a six-cylinder engine" is a statement of fact,but not a warranty.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is presumed to become "part of the basis of the bargain?"

Accepted Answer

A)  all statements of fact by the seller at the time the contract is made 
B)  all statements of opinion by the seller 
C)  most statements of value by the buyer 
D)  A and C only 
E)  A and B only 
A)  all statements of fact by the seller at the time the contract is made 
B)  all statements of opinion by the seller 
C)  most statements of value by the buyer 
D)  A and C only 
E)  A and B only

Question 12

The statement "This car has an actual mileage of 25,000 miles" is an express warranty.

Accepted Answer

A) True 
 B)False

Question 13

A model used in connection with selling goods will usually amount to a warranty that the goods will be as the model indicates.

Accepted Answer

A) True 
 B)False

Question 14

Is the Magnuson-Moss Warranty Act tilted too much in favor of the consumer? If you think so,how would you change it?

Accepted Answer

Although the act is strict on the labeli

Question 15

Sally buys a used riding lawn mower from the local mower dealership.The lawn mower had a sign on it that said "as is." The dealer made no promises concerning the performance of the lawn mower.When Sally attempts to use the lawn mower,the brakes fail,the lawn mower crashes into a wall,and Sally is injured.When Sally sues the dealer,what is the outcome?

Accepted Answer

A)  The dealer wins; there were no express warranties and all implied warranties have been successfully disclaimed. 
B)  Sally wins; she can recover on the basis of express warranties only. 
C)  Sally wins; she can recover on the basis of implied warranties only. 
D)  Sally wins; she can recover on the basis of either express or implied warranties. 
A)  The dealer wins; there were no express warranties and all implied warranties have been successfully disclaimed. 
B)  Sally wins; she can recover on the basis of express warranties only. 
C)  Sally wins; she can recover on the basis of implied warranties only. 
D)  Sally wins; she can recover on the basis of either express or implied warranties.

Question 16

Which of the following statements regarding the Magnuson-Moss Warranty Act is NOT true?

Accepted Answer

A)  It is a federal law. 
B)  It requires a seller who gives an express warranty to label that warranty as either full or limited. 
C)  It applies to all goods. 
D)  It prohibits a seller who gives an express warranty from disclaiming the implied warranties. 
E)  A and C only are NOT true. 
A)  It is a federal law. 
B)  It requires a seller who gives an express warranty to label that warranty as either full or limited. 
C)  It applies to all goods. 
D)  It prohibits a seller who gives an express warranty from disclaiming the implied warranties. 
E)  A and C only are NOT true.

Question 17

Under the implied warranty of fitness for human consumption,it is implied that the food served is fit for human consumption.

Accepted Answer

A) True 
 B)False

Question 18

A seller agrees to deliver to a buyer certain carpet.The written contract calls for "1,000 square yards of carpeting,strands to be one-half inch long and twisted,400 strands per square inch,made from our nylon-wool blend,color navy blue." The contract,at the bottom,contained the following clause: "This contract contains no warranties,either express or implied." When the carpeting is delivered,the strands are only three-eighths inch long,are not twisted,and there are only 350 strands per square inch.The buyer sues the seller for breach of express and implied warranties.Discuss the buyer's contentions and the seller's response.

Accepted Answer

The disclaimer is inconsistent

Question 19

The implied warranty of merchantability requires that goods be fit for the ordinary purposes for which they are intended.

Accepted Answer

A) True 
 B)False

Question 20

A full warranty is a guaranty by the warrantor that the product will be repaired or replaced for free.

Accepted Answer

A) True 
 B)False

Exam 21: Sales and Lease Warranties

Which of the following is correct with regard to express warranties?

Which of the following best describes the warranty of title in connection with a leasing transaction?

A written contract contains an express warranty that the goods will be of "quality grade A." The seller wishes to disclaim this express warranty.How may the seller accomplish this?

Under the implied warranty of merchantability,fungible goods need only meet the highest level of quality.

The following will create an express warranty EXCEPT:

A statement that a trailer has a capacity of 3,000 pounds would be treated as an affirmation of fact and creates a warranty.

Steve was eating a chicken salad sandwich at a restaurant and began choking on a chicken bone.Which of the following is correct?

Sellers of goods warrant that the goods they sell are delivered free from any third-party security interests.

Generally,manufacturers are liable for express warranties made by wholesalers.

The statement "This car has a six-cylinder engine" is a statement of fact,but not a warranty.

Which of the following is presumed to become "part of the basis of the bargain?"

The statement "This car has an actual mileage of 25,000 miles" is an express warranty.

A model used in connection with selling goods will usually amount to a warranty that the goods will be as the model indicates.

Is the Magnuson-Moss Warranty Act tilted too much in favor of the consumer? If you think so,how would you change it?

Which of the following statements regarding the Magnuson-Moss Warranty Act is NOT true?

Under the implied warranty of fitness for human consumption,it is implied that the food served is fit for human consumption.

The implied warranty of merchantability requires that goods be fit for the ordinary purposes for which they are intended.

A full warranty is a guaranty by the warrantor that the product will be repaired or replaced for free.

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