Question 1

Which of the following statements could create an express warranty?

Accepted Answer

A)  "This is the best car available in town." 
B)  "This car is worth twice the price." 
C)  "This car was overhauled last year." 
D)  "This car is quite a bargain." 
A)  "This is the best car available in town." 
B)  "This car is worth twice the price." 
C)  "This car was overhauled last year." 
D)  "This car is quite a bargain."

Question 2

A seller need not warrant the validity of the title to the goods it is selling as long as the transfer of title is rightful.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following best describes an express warranty?

Accepted Answer

A)  It is a written provision obligating the seller to repair or replace goods for a specified period of time. 
B)  It is any promise,oral or written,obligating the seller to repair or replace goods for a specified period of time. 
C)  It is any statement or other representation made with respect to goods. 
D)  It is any guarantee that the goods will pass without objection in the trade. 
A)  It is a written provision obligating the seller to repair or replace goods for a specified period of time. 
B)  It is any promise,oral or written,obligating the seller to repair or replace goods for a specified period of time. 
C)  It is any statement or other representation made with respect to goods. 
D)  It is any guarantee that the goods will pass without objection in the trade.

Question 4

Software licenses may not contain disclaimers that limit the licensor's liability if the software malfunctions.

Accepted Answer

A) True 
 B)False

Question 5

The implied warranty of fitness for a particular purpose applies only to merchant sellers and lessors.

Accepted Answer

A) True 
 B)False

Question 6

The doctrine of caveat emptor means:

Accepted Answer

A)  "Let the seller beware" 
B)  "Let the seller be liable for all damages" 
C)  "Let the buyer beware" 
D)  "That the legal remedy must be just and fair" 
A)  "Let the seller beware" 
B)  "Let the seller be liable for all damages" 
C)  "Let the buyer beware" 
D)  "That the legal remedy must be just and fair"

Question 7

Sam is a high school English teacher who holds a garage sale at which he sells an old cordless drill to a neighbor.When the neighbor uses the drill,he is injured because the drill is defective.The neighbor can sue Sam for a breach of the implied warranty of merchantability.

Accepted Answer

A) True 
 B)False

Question 8

Intent is necessary in order to create an express warranty.

Accepted Answer

A) True 
 B)False

Question 9

Seller,a merchant,sells and delivers 1,000 units of product X to Buyer.Later,it is discovered that product X infringes upon a patent owned by XYZ,Inc.Further,all 1,000 units of product X were subject to a security interest in favor of RST Corp.Buyer sues the Seller for breach of warranty.In this situation,which of the following is true?

Accepted Answer

A)  Seller wins; there was no warranty given in this transaction. 
B)  Seller wins; the only relevant warranty was one of title,and the seller had good title to the goods. 
C)  Buyer wins; there is a breach of the warranty of no infringements only. 
D)  Buyer wins; there is a breach of both the warranty of no infringements and of no security interests. 
A)  Seller wins; there was no warranty given in this transaction. 
B)  Seller wins; the only relevant warranty was one of title,and the seller had good title to the goods. 
C)  Buyer wins; there is a breach of the warranty of no infringements only. 
D)  Buyer wins; there is a breach of both the warranty of no infringements and of no security interests.

Question 10

A statement of opinion is considered to be a warranty.

Accepted Answer

A) True 
 B)False

Question 11

Buyer enters a paint store and tells the clerk that she needs paint that will cover and stick to a stucco wall.The seller tells her that brand X paint will do the trick.Buyer purchases brand X paint and paints her stucco wall,but three weeks later the paint peels off.This would be a breach of which kind of warranty?

Accepted Answer

A)  implied warranty of merchantability 
B)  implied warranty of fitness for a particular purpose 
C)  an express warranty 
D)  implied warranty of no infringements 
A)  implied warranty of merchantability 
B)  implied warranty of fitness for a particular purpose 
C)  an express warranty 
D)  implied warranty of no infringements

Question 12

Why do you think there are so many rules and laws regarding warranties,their language,and how they arise and can be disclaimed? If you were to simplify these rules,how would you do so?

Accepted Answer

Warranties are subject to negotiation be

Question 13

Which of the following is not one of the aspects of the implied warranty of merchantability?

Accepted Answer

A)  The goods are fit for the ordinary purposes for which they are used. 
B)  The goods are adequately contained,packaged,and labeled. 
C)  The price of the goods is not excessive,taking into account the goods' grade and quality. 
D)  The goods are of such quality that they pass without objection in the trade. 
A)  The goods are fit for the ordinary purposes for which they are used. 
B)  The goods are adequately contained,packaged,and labeled. 
C)  The price of the goods is not excessive,taking into account the goods' grade and quality. 
D)  The goods are of such quality that they pass without objection in the trade.

Question 14

The warranty of merchantability applies only to sales or leases by merchants.

Accepted Answer

A) True 
 B)False

Question 15

When a court finds that a warranty disclaimer is unconscionable,it can do the following EXCEPT:

Accepted Answer

A)  not enforce the disclaimer clause 
B)  order specific performance 
C)  refuse to enforce the entire contract 
D)  limit the application of the disclaimer clause 
A)  not enforce the disclaimer clause 
B)  order specific performance 
C)  refuse to enforce the entire contract 
D)  limit the application of the disclaimer clause

Question 16

States apply two tests when deciding whether there has been a breach of the warranty of fitness for human consumption.What are these two tests and how do they differ? Which test is better? Should one or the other apply in all situations,or should one test apply in some situations and the other apply in other situations?

Accepted Answer

The consumer expectation test is broader

Question 17

The implied warranty of merchantability applies to the goods themselves,and not to the manner in which they are packaged.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following would be a breach of the implied warranty of merchantability?

Accepted Answer

A)  a lawn mower that does not cut the grass 
B)  a cherry pit in a cherry pie,if using the foreign substance test 
C)  a wall paint that works fine for all walls,except for stucco,which is what the buyer bought it for 
D)  a stereo that had been stolen by the seller 
A)  a lawn mower that does not cut the grass 
B)  a cherry pit in a cherry pie,if using the foreign substance test 
C)  a wall paint that works fine for all walls,except for stucco,which is what the buyer bought it for 
D)  a stereo that had been stolen by the seller

Question 19

The Magnuson-Moss Warranty Act regulates written warranties relating to consumer products.

Accepted Answer

A) True 
 B)False

Question 20

Goods may be delivered to a buyer with a third-party trademark claim.

Accepted Answer

A) True 
 B)False

Exam 21: Sales and Lease Warranties

Which of the following statements could create an express warranty?

A seller need not warrant the validity of the title to the goods it is selling as long as the transfer of title is rightful.

Which of the following best describes an express warranty?

Software licenses may not contain disclaimers that limit the licensor's liability if the software malfunctions.

The implied warranty of fitness for a particular purpose applies only to merchant sellers and lessors.

The doctrine of caveat emptor means:

Sam is a high school English teacher who holds a garage sale at which he sells an old cordless drill to a neighbor.When the neighbor uses the drill,he is injured because the drill is defective.The neighbor can sue Sam for a breach of the implied warranty of merchantability.

Intent is necessary in order to create an express warranty.

A statement of opinion is considered to be a warranty.

Why do you think there are so many rules and laws regarding warranties,their language,and how they arise and can be disclaimed? If you were to simplify these rules,how would you do so?

Which of the following is not one of the aspects of the implied warranty of merchantability?

The warranty of merchantability applies only to sales or leases by merchants.

When a court finds that a warranty disclaimer is unconscionable,it can do the following EXCEPT:

The implied warranty of merchantability applies to the goods themselves,and not to the manner in which they are packaged.

Which of the following would be a breach of the implied warranty of merchantability?

The Magnuson-Moss Warranty Act regulates written warranties relating to consumer products.

Goods may be delivered to a buyer with a third-party trademark claim.

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Third-Party Rights and Discharge

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Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

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