Exam 21: Warranties

The warranty of no interference warrants that goods sold are free from any third-party security interests,or encumbrances that are unknown to the buyer.

Explain the different types of warranty disclaimers.

Damages that are generally equal to the difference between the value of the goods as warranted and the actual value of the goods accepted at the time and place of acceptance are known as ________.

Which of the following is true of the display of warranty disclaimers?

Joe's Alternative Realty leased a piece of real estate to WideEye Builders.While still on lease,Joe's Alternative Realty gave that same piece of real estate as security interest to procure a loan from Cloudnine Bank.The real estate,which was collateral,was eventually repossessed by the bank from WideEye Builders,after Joe's Alternative Realty defaulted on their loan payment.What warranty had Joe's Alternative Realty breached with WideEye?

Thoroughly and completely explain express warranties.

Which of the following would constitute an implied warranty?

To be effective,a disclaimer of the implied warranty of merchantability must specifically mention the term merchantability.

An affirmation of the value of goods creates an express warranty.

A statement of opinion may be which of the following?

The ________ is a federal statute,passed in 1975,that regulates written warranties on consumer products.

Implied warranties are expressly stated in the sales or lease contract.

StoryBoard Creatives approached Logos Studios with a script for a movie.Logos Studios liked the script,and bought the rights for the script from StoryBoard.Subsequently,Mr.Simpson,a former employee of StoryBoard claimed that he had the copyright to that script.Mr.Simpson proved his copyright in court.He then notified Logos Studios that they could not start production on the script without his permission,and adequate payment of fees.Logos Studios then rescinded the contract with StoryBoard based on the breach of ________.

Mark goes to Tony's Lumber Yard to buy some lumber to build a new roof for his cabin.Mark tells Tony,the lumber yard owner,to provide him an exact type of wood that can resist the wood decay caused due to the damp environment around the cabin.Mark buys the lumber after Tony assures him that the wood is exactly what Mark is looking for.But then the dampness affects the wood and it caves in.Which of the following warranties has Tony explicitly breached by not providing Mark the lumber he needed?

A ________ is a warranty in which sellers of goods warrant that the goods they sell are delivered free from any third-party security interests,liens,or encumbrances that are unknown to the buyer.

Explain the implied warranty of fitness for a particular purpose.

An "as is" disclaimer implies that all implied warranties are disclaimed.

A warranty in which the seller warrants that he or she has valid title to the goods he or she is selling and that the transfer of title is rightful is known as a warranty ________.

Limited warranties are made more often by sellers and lessors than are full warranties.

The implied warranty of merchantability does not apply to sales or leases by nonmerchants or casual sellers.