Question 1

Lemon laws,which assist consumers who have purchased automobiles that turn out to be "lemons,":

Accepted Answer

A) are enacted by state legislatures. 
B) are enacted by Congress. 
C) are included in the warranty provisions of the UCC. 
D) come from common law equitable remedies. 
A) are enacted by state legislatures. 
B) are enacted by Congress. 
C) are included in the warranty provisions of the UCC. 
D) come from common law equitable remedies.

Question 2

Strict liability is based on contract law.

Accepted Answer

A) True 
 B)False

Question 3

Ned sold his refrigerator to his next door neighbor,Ian.Ned fails to tell Ian he has not finished paying for the refrigerator and Neighborhood Bank has a lien on it.

Accepted Answer

A) Ned has breached the warranty against infringement. 
B) Ned has breached the warranty of title. 
C) Ned has breached the warranty of merchantability. 
D) Ned has not breached any warranties because he did not guarantee that the refrigerator was free and clear of security liens. 
A) Ned has breached the warranty against infringement. 
B) Ned has breached the warranty of title. 
C) Ned has breached the warranty of merchantability. 
D) Ned has not breached any warranties because he did not guarantee that the refrigerator was free and clear of security liens.

Question 4

Rayco Ski Shop purchased 500 pairs of skis from Skitron.Rayco is located in Colorado.Skitron's business is in Tennessee.The purchase order included the following term:"F.O.B.Colorado." The contract makes no mention of risk of loss or title.The contract can be described as a:

Accepted Answer

A) shipment contract. 
B) destination contract. 
C) bulk transfer. 
D) sale on approval. 
A) shipment contract. 
B) destination contract. 
C) bulk transfer. 
D) sale on approval.

Question 5

A gun manufacturer in Helena,Montana agrees to sell guns and ammunition to the ATF in Washington,D.C.The terms of the contract specify that the goods are to be shipped "FOB,Chicago." When does the buyer acquire title and risk of loss?

Accepted Answer

A) When the goods reach Chicago. 
B) When the goods are delivered to the carrier in Montana. 
C) When the goods are tendered in Washington D.C.by the carrier. 
D) When the goods reach Washington D.C. 
A) When the goods reach Chicago. 
B) When the goods are delivered to the carrier in Montana. 
C) When the goods are tendered in Washington D.C.by the carrier. 
D) When the goods reach Washington D.C.

Question 6

Buyer is located in Des Moines,Iowa and seller is located in Sacramento,California.The contract specifies F.O.B.Des Moines.This contract is a:

Accepted Answer

A) destination contract. 
B) sale or return. 
C) shipment contract. 
D) sale on approval. 
A) destination contract. 
B) sale or return. 
C) shipment contract. 
D) sale on approval.

Question 7

Graham,an adult,purchases a car from a minor,and subsequently sells it to Harlow,another adult.Harlow paid full value for the car and had no reason to know that Graham had purchased the car from a minor.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 voidable title and Harlow gets good title. 
D) Graham had void title and Harlow gets void 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 voidable title and Harlow gets good title. 
D) Graham had void title and Harlow gets void title.

Question 8

Bugs R Us,an organic gardening merchant,sells and delivers 100 units of live lady bugs to eat the bad bugs on the buyer's award-winning vegetables.The buyer ordered the lady bugs without consultation with Bugs R Us for suggestions.Although the buyer correctly knew that lady bugs were the appropriate bugs for eating bad bugs on vegetables,when the lady bugs were delivered,they refused to eat the bad bugs.The merchant has breached which warranty?

Accepted Answer

A) Implied breach of fitness for a particular purpose. 
B) Implied breach of merchantability. 
C) No warranty,as you can't control the behavior of insects. 
D) Implied warranty against infringement. 
A) Implied breach of fitness for a particular purpose. 
B) Implied breach of merchantability. 
C) No warranty,as you can't control the behavior of insects. 
D) Implied warranty against infringement.

Question 9

Angela uses fraudulent means to induce Walter to enter a sales contract.Angela obtains a voidable title to the goods.

Accepted Answer

A) True 
 B)False

Question 10

In a tort case,the statute of limitations runs from the time the defect was discovered.

Accepted Answer

A) True 
 B)False

Question 11

The term F.O.B.:

Accepted Answer

A) can indicate a destination or shipment contract. 
B) stands for "freight on board." 
C) requires the seller to insure the goods for the buyer's benefit. 
D) shifts the risk of loss to the buyer when the goods are identified. 
A) can indicate a destination or shipment contract. 
B) stands for "freight on board." 
C) requires the seller to insure the goods for the buyer's benefit. 
D) shifts the risk of loss to the buyer when the goods are identified.

Question 12

Murphy stops at a garage sale and purchases an oak rocking chair.Murphy and the seller agree that Murphy will pick up the rocking chair the next day when Murphy will return with a truck.That night,there is an earthquake and the rocking chair is swallowed up by earth and totally destroyed.In this case,the seller had the risk of loss and must refund the purchase price to Murphy.

Accepted Answer

A) True 
 B)False

Question 13

A tag attached to a tree in a nursery identifying the tree as a Southern Magnolia creates an express warranty.

Accepted Answer

A) True 
 B)False

Question 14

Marco sells goods to Byron for his personal use on the basis that the goods may be returned if Byron is not satisfied with them.The sale is:

Accepted Answer

A) a "sale or return." 
B) a "sale on approval." 
C) a consignment. 
D) outside the UCC. 
A) a "sale or return." 
B) a "sale on approval." 
C) a consignment. 
D) outside the UCC.

Question 15

Daddy buys an electric car for his 10-year-old son.Daddy follows the directions for assembly carefully,but the son gets an injuring shock when he sits in the car.If Daddy and son sue the manufacturer for negligence,they will:

Accepted Answer

A) be successful only if they can prove that the car manufacturer knew of the defect and failed to correct it. 
B) be successful only if they can prove that the car manufacturer failed to use reasonable care in designing,manufacturing,or warning the purchasers about intended uses and foreseeable misuses. 
C) lose,because the son has no privity of contract and therefore no standing to sue. 
D) not be successful if the car was sold "AS IS." 
A) be successful only if they can prove that the car manufacturer knew of the defect and failed to correct it. 
B) be successful only if they can prove that the car manufacturer failed to use reasonable care in designing,manufacturing,or warning the purchasers about intended uses and foreseeable misuses. 
C) lose,because the son has no privity of contract and therefore no standing to sue. 
D) not be successful if the car was sold "AS IS."

Question 16

Which of the following statements could 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 17

A merchant seller who would like to exclude the warranty of merchantability can do so by doing which of the following?

Accepted Answer

A) The merchant can sell the goods "As Is." 
B) The merchant can sell the goods "With All Faults." 
C) The merchant can write conspicuously that the warranty of MERCHANTABILITY is excluded. 
D) All of the above. 
A) The merchant can sell the goods "As Is." 
B) The merchant can sell the goods "With All Faults." 
C) The merchant can write conspicuously that the warranty of MERCHANTABILITY is excluded. 
D) All of the above.

Question 18

Roger purchased a tennis racquet from Rafael.Roger can prove he is a BFP by showing only that he gave value and acted in good faith.

Accepted Answer

A) True 
 B)False

Question 19

An express warranty can be created by which of the following?

Accepted Answer

A) An affirmation of fact or promise. 
B) A description. 
C) A model. 
D) All of the above. 
A) An affirmation of fact or promise. 
B) A description. 
C) A model. 
D) All of the above.

Question 20

The UCC requires sellers to give written warranties.

Accepted Answer

A) True 
 B)False

Exam 20: Ownership and Warranties

Lemon laws,which assist consumers who have purchased automobiles that turn out to be "lemons,":

Strict liability is based on contract law.

Ned sold his refrigerator to his next door neighbor,Ian.Ned fails to tell Ian he has not finished paying for the refrigerator and Neighborhood Bank has a lien on it.

Rayco Ski Shop purchased 500 pairs of skis from Skitron.Rayco is located in Colorado.Skitron's business is in Tennessee.The purchase order included the following term:"F.O.B.Colorado." The contract makes no mention of risk of loss or title.The contract can be described as a:

A gun manufacturer in Helena,Montana agrees to sell guns and ammunition to the ATF in Washington,D.C.The terms of the contract specify that the goods are to be shipped "FOB,Chicago." When does the buyer acquire title and risk of loss?

Buyer is located in Des Moines,Iowa and seller is located in Sacramento,California.The contract specifies F.O.B.Des Moines.This contract is a:

Graham,an adult,purchases a car from a minor,and subsequently sells it to Harlow,another adult.Harlow paid full value for the car and had no reason to know that Graham had purchased the car from a minor.Which of the following best describes this situation?

Angela uses fraudulent means to induce Walter to enter a sales contract.Angela obtains a voidable title to the goods.

In a tort case,the statute of limitations runs from the time the defect was discovered.

The term F.O.B.:

A tag attached to a tree in a nursery identifying the tree as a Southern Magnolia creates an express warranty.

Marco sells goods to Byron for his personal use on the basis that the goods may be returned if Byron is not satisfied with them.The sale is:

Daddy buys an electric car for his 10-year-old son.Daddy follows the directions for assembly carefully,but the son gets an injuring shock when he sits in the car.If Daddy and son sue the manufacturer for negligence,they will:

Which of the following statements could create an express warranty?

A merchant seller who would like to exclude the warranty of merchantability can do so by doing which of the following?

Roger purchased a tennis racquet from Rafael.Roger can prove he is a BFP by showing only that he gave value and acted in good faith.

An express warranty can be created by which of the following?

The UCC requires sellers to give written warranties.

Introduction to Law

Business Ethics and Social Responsibility

Dispute Resolution

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Torts and Product Liability

Crime

International Law

Introduction to Contracts

Agreement

Consideration

Legality

Capacity and Consent

Written Contracts

Third parties

Performance and Discharge

Remedies

practical Contracts

Introduction to Sales

Performance and Remedies

Negotiable Instruments

Secured Transactions

Bankruptcy

Agency

Employment and Labor Law

Employment and Discrimination

Starting a Business

Corporations

Government Regulations:Securities and Antitrust

Consumer Protection

Cyberlaw

Intellectual Property

Real and Personal Property

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