Question 1

The foreign food test is used to find breaches in the implied warranty of fitness for human consumption.

Accepted Answer

A) True 
 B)False

Question 2

The implied warranty of fitness for a particular purpose applies only to merchants.

Accepted Answer

A) True 
 B)False

Question 3

Express warranties are always implied by law.

Accepted Answer

A) True 
 B)False

Question 4

Under the foreign substance test,if a person were injured by a chicken bone while eating a chicken salad sandwich,then the implied warranty would be breached.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true of the Magnuson-Moss Warranty Act?

Accepted Answer

A) It requires all warrantors to make express written warranties. 
B) It obligates all warrantors to make disclaimer warranties for their products. 
C) It authorizes warrantors to establish an informal dispute-resolution procedure. 
D) Implied warranties are voidable under this Act. 
A) It requires all warrantors to make express written warranties. 
B) It obligates all warrantors to make disclaimer warranties for their products. 
C) It authorizes warrantors to establish an informal dispute-resolution procedure. 
D) Implied warranties are voidable under this Act.

Question 6

Which of the following is a similarity between the foreign substance food test and the consumer expectation test?

Accepted Answer

A) They are both used to determine a buyer's knowledge of a particular food product. 
B) They are both used to determine a buyer's interest in a particular food product. 
C) They are both part of the implied warranty of fitness for human consumption. 
D) They are both part of the express warranty an eatery provides. 
A) They are both used to determine a buyer's knowledge of a particular food product. 
B) They are both used to determine a buyer's interest in a particular food product. 
C) They are both part of the implied warranty of fitness for human consumption. 
D) They are both part of the express warranty an eatery provides.

Question 7

That "goods must be fit for the ordinary purposes for which they are used," would be an example of a(n)________.

Accepted Answer

A) implied warranty 
B) explicit warranty 
C) statement of opinion 
D) stamp of approval 
A) implied warranty 
B) explicit warranty 
C) statement of opinion 
D) stamp of approval

Question 8

Eliza buys a car from TinCar Autos with a warranty that says that any defect of the car will be repaired or replaced free for a period of six months after the sale.TinCar has taken security interests in the car.Before completely paying for the car,Eliza sells the car to Mona for cash.Mona is unaware of TinCar's security interest in the car.After Eliza misses several of her payments,TinCar discovers that Mona has the car,and repossesses it.What kind of warranty did TinCar provide to Eliza?

Accepted Answer

A) limited warranty 
B) full warranty 
C) warranty of good title 
D) warranty of no interference 
A) limited warranty 
B) full warranty 
C) warranty of good title 
D) warranty of no interference

Question 9

Eliza buys a car from TinCar Autos with a warranty that says any defect of the car will be repaired or replaced free for a period of six months after the sale.TinCar has taken security interests in the car.Before completely paying off for the car,Eliza sells the car to Mona for cash.Mona is unaware of TinCar's security interest in the car.After Eliza misses several of her payments,TinCar discovers that Mona has the car,and repossesses it.Which warranty breach can Mona assert to recover from Eliza?

Accepted Answer

A) warranty of no security interests 
B) warranty against infringements 
C) warranty of good title 
D) warranty of no interference 
A) warranty of no security interests 
B) warranty against infringements 
C) warranty of good title 
D) warranty of no interference

Question 10

What of the following is true of an "as is" disclaimer?

Accepted Answer

A) It disclaims all implied warranties. 
B) It disclaims all express warranties. 
C) It is a type of implied warranty. 
D) It cannot be replaced by another warranty. 
A) It disclaims all implied warranties. 
B) It disclaims all express warranties. 
C) It is a type of implied warranty. 
D) It cannot be replaced by another warranty.

Question 11

An implied warranty of fitness for a particular purpose is breached if the goods do not meet the buyer's or lessee's expressed needs.

Accepted Answer

A) True 
 B)False

Question 12

A ________ is a seller's or lessor's express or implied assurance to a buyer or lessee that the goods sold or leased meet certain quality standards.

Accepted Answer

A) bond 
B) caveat emptor 
C) warranty 
D) collateral 
A) bond 
B) caveat emptor 
C) warranty 
D) collateral

Question 13

What is the difference between a full warranty and a limited warranty?

Accepted Answer

For a warranty to qualify as a full warr

Question 14

A test to determine merchantability based on unfamiliar objects found in food is known as the ________.

Accepted Answer

A) foreign substance test 
B) consumer expectation test 
C) contamination test 
D) contagion test 
A) foreign substance test 
B) consumer expectation test 
C) contamination test 
D) contagion test

Question 15

An implied warranty of ________ is a warranty that applies to food or drink consumed on or off the premises of restaurants,grocery stores,fast-food outlets,and vending machines.

Accepted Answer

A) statement of opinion 
B) express warranty 
C) stamp of approval 
D) fitness for human consumption 
A) statement of opinion 
B) express warranty 
C) stamp of approval 
D) fitness for human consumption

Question 16

Which of the following is true of express warranties?

Accepted Answer

A) A manufacturer is liable for express warranties made by wholesalers. 
B) A retailer is liable for the express warranties made by manufacturers of goods it sells. 
C) A retailer is not allowed to make warranties on manufacturer goods. 
D) A manufacturer is obligated by law to make an express warranty on all its goods. 
A) A manufacturer is liable for express warranties made by wholesalers. 
B) A retailer is liable for the express warranties made by manufacturers of goods it sells. 
C) A retailer is not allowed to make warranties on manufacturer goods. 
D) A manufacturer is obligated by law to make an express warranty on all its goods.

Question 17

A statement that negates express and implied warranties is known as a ________.

Accepted Answer

A) warranty disclaimer 
B) limited warranty 
C) warranty infringement 
D) warranty of no interference 
A) warranty disclaimer 
B) limited warranty 
C) warranty infringement 
D) warranty of no interference

Question 18

Only written express warranties are valid.

Accepted Answer

A) True 
 B)False

Question 19

The warranty against infringements protects trademarks and copyright claims.

Accepted Answer

A) True 
 B)False

Question 20

The Magnuson-Moss Warranty Act does not govern warranties of commercial or industrial transactions.

Accepted Answer

A) True 
 B)False

Exam 21: Warranties

The foreign food test is used to find breaches in the implied warranty of fitness for human consumption.

The implied warranty of fitness for a particular purpose applies only to merchants.

Express warranties are always implied by law.

Under the foreign substance test,if a person were injured by a chicken bone while eating a chicken salad sandwich,then the implied warranty would be breached.

Which of the following is true of the Magnuson-Moss Warranty Act?

Which of the following is a similarity between the foreign substance food test and the consumer expectation test?

That "goods must be fit for the ordinary purposes for which they are used," would be an example of a(n)________.

What of the following is true of an "as is" disclaimer?

An implied warranty of fitness for a particular purpose is breached if the goods do not meet the buyer's or lessee's expressed needs.

A ________ is a seller's or lessor's express or implied assurance to a buyer or lessee that the goods sold or leased meet certain quality standards.

What is the difference between a full warranty and a limited warranty?

A test to determine merchantability based on unfamiliar objects found in food is known as the ________.

An implied warranty of ________ is a warranty that applies to food or drink consumed on or off the premises of restaurants,grocery stores,fast-food outlets,and vending machines.

Which of the following is true of express warranties?

A statement that negates express and implied warranties is known as a ________.

Only written express warranties are valid.

The warranty against infringements protects trademarks and copyright claims.

The Magnuson-Moss Warranty Act does not govern warranties of commercial or industrial transactions.

Legal Environment of Business and Online Commerce

Courts and Jurisdiction

Judicial, alternative, and Online Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crime

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, defenses, and Discharge

Banking System and Electronic Financial Transactions

Credit, mortgages, and Debtors Rights

Secured Transactions

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, agents, and Independent Contractors

Employment, worker Protection, and Immigration Law

Labor Law

Equal Opportunity in Employment

Small Business, entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, e-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property, real Property, and Insurance

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants Duties and Liability

Wills, trusts, and Estates

Family Law

International and World Trade Law

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