Exam 21: Sales and Lease Warranties

Hank was shopping for a new bike when he saw a used one at a local shop that interested him.He asked to take it for a test ride for an hour,and the shop's owner responded by telling him he could try it out all day if he wanted to.The shop's owner also invited Hank to have it checked out at another shop if he wanted to.Hank took the bike for several hours,riding on the city streets near the bike shop.He never rode it really fast,nor took it down any really steep hills.Hank noticed that the back tire was worn,but decided he wanted the bike anyway,and purchased a new tire at the time he got the bike.There was no mention of any warranty or disclaimers of warranty.Hank rode the bike a few days and it performed to his liking.On Saturday,Hank headed into the mountains on the edge of town.After climbing for over an hour,he turned for the coast home.He soon found out that the brakes were in bad shape,and barely stopped him on one steep section.Furthermore,the wheels were out of balance at high speeds.After getting home,Hank was inspecting the brakes and noticed that the frame had a small crack in it.He took the bike to another shop for an inspection and evaluation and learned that the crack had occurred where the frame had rusted from the inside out.Discuss whether Hank has any breach of warranty claims against the shop where he purchased the bike.

The term "basis of the bargain" is a test that is strictly applied by the courts under the UCC.

Which of the following would create an express warranty?

The warranty of no infringement applies:

Which of the following warranties apply to merchants only?

JKL Company manufactures and sells home theater equipment for home use.The company is contemplating what type of warranty it should place on its products,and wishes to know the ramifications of the Magnuson-Moss Warranty Act.Which of the following statements is true?

The term "warranty" may be defined as:

The warranty against interference is the same as the warranty of quiet possession.

To which of the following transactions would the implied warranty of merchantability apply?

The statement "This house paint will last five years" can be an express warranty.

Greencutter Lawn Equipment sells lawn mowers and other lawn-care equipment.Greencutter wants to provide a written warranty with its equipment under which it will repair the equipment for 2 years from the date of purchase.Which of the following is true in this circumstance under the Magnuson-Moss Warranty Act?

Which of the following is not necessary in order for the implied warranty of fitness for a particular purpose to apply?

Which of the following is true about the difference between express and implied warranties?