Question 1

Which of the following statements could most likely create an express warranty?

Accepted Answer

A) "This is the best car available in town." 
B) "This motorcycle will double in value in the next ten years." 
C) "These tires have 10,000 miles on them." 
D) "This antique is quite a bargain." 
A) "This is the best car available in town." 
B) "This motorcycle will double in value in the next ten years." 
C) "These tires have 10,000 miles on them." 
D) "This antique is quite a bargain."

Question 2

Bill is injured when his new motorcycle speeds out of control because of a defective part.In most jurisdictions,Bill

Accepted Answer

A) can sue the motorcycle manufacturer even though he does not have privity. 
B) cannot sue the motorcycle manufacturer because his injuries are personal injuries as opposed to economic loss. 
C) cannot sue the motorcycle manufacturer because the law requires arbitration. 
D) cannot sue the motorcycle manufacturer because there is no privity of contract. 
A) can sue the motorcycle manufacturer even though he does not have privity. 
B) cannot sue the motorcycle manufacturer because his injuries are personal injuries as opposed to economic loss. 
C) cannot sue the motorcycle manufacturer because the law requires arbitration. 
D) cannot sue the motorcycle manufacturer because there is no privity of contract.

Question 3

Even though a car has an obvious dent in the rear quarter panel,the salesperson tells a potential customer,"This car has never been in an accident." The salesperson's statement creates a valid express warranty.

Accepted Answer

A) True 
 B)False

Question 4

Graham purchased a car and subsequently sold it to Harlow.Harlow paid full value for the car and had no reason to know that Graham had stolen the car and did not own the title.Which of the following best describes this situation?

Accepted Answer

A) Graham had good title and Harlow gets good title. 
B) Graham had good title and Harlow gets a voidable title. 
C) Graham had void title and Harlow gets void title. 
D) Graham had void title and Harlow gets good title. 
A) Graham had good title and Harlow gets good title. 
B) Graham had good title and Harlow gets a voidable title. 
C) Graham had void title and Harlow gets void title. 
D) Graham had void title and Harlow gets good title.

Question 5

Tu-thumbs buys a used paint sprayer from the local paint store.The sprayer had a large sign on it which said "ASIS." The dealer made no promises or statements concerning the performance of the paint sprayer.When Tu-thumbs attempts to spray paint his house,the trigger on the sprayer sticks in the "on" position and before Tu-thumbs can pull the electrical cord to cut the power,paint is sprayed all over his prize Borzoi dog that is scheduled to be shown in a dog show the next day.Tu-thumbs sues the dealership.Who wins?

Accepted Answer

A) Dealer wins; there were no express warranties and all implied warranties have been successfully disclaimed. 
B) Tu-thumbs wins; he can recover on the basis of express warranties. 
C) Tu-thumbs wins; he can recover on the basis of the implied warranty of merchantability because the word "merchantability" was not used in the disclaimer. 
D) Dealer wins; even though there were implied warranties, the damage to the dog could not have been foreseen. 
A) Dealer wins; there were no express warranties and all implied warranties have been successfully disclaimed. 
B) Tu-thumbs wins; he can recover on the basis of express warranties. 
C) Tu-thumbs wins; he can recover on the basis of the implied warranty of merchantability because the word "merchantability" was not used in the disclaimer. 
D) Dealer wins; even though there were implied warranties, the damage to the dog could not have been foreseen.

Exam 22: Ownership, Risk and Warranties

Which of the following statements could most likely create an express warranty?

Bill is injured when his new motorcycle speeds out of control because of a defective part.In most jurisdictions,Bill

Even though a car has an obvious dent in the rear quarter panel,the salesperson tells a potential customer,"This car has never been in an accident." The salesperson's statement creates a valid express warranty.

Graham purchased a car and subsequently sold it to Harlow.Harlow paid full value for the car and had no reason to know that Graham had stolen the car and did not own the title.Which of the following best describes this situation?

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