Question 1

Aerospace, Inc., makes and sells flight navigation equipment, through inde?pendent salespersons, to retailers for resale to consumers. The Magnuson-Moss Warranty Act covers

Accepted Answer

A)  implied warranties, oral statements, and written promises. 
B)  only implied warranties that consumers are aware of. 
C)  only a salesperson's oral statements. 
D)  only a seller's written promises. 
A)  implied warranties, oral statements, and written promises. 
B)  only implied warranties that consumers are aware of. 
C)  only a salesperson's oral statements. 
D)  only a seller's written promises.

Question 2

A seller who makes a statement that relates to the value or worth of the goods creates an express warranty.

Accepted Answer

A) True 
 B)False

Question 3

A warranty against infringement is a promise by the seller that the prod?uct is free from any patent, trademark, or copyright claims of a third person.

Accepted Answer

A) True 
 B)False

Question 4

Trucks & Trailers, Inc. (T&T), and United Delivery Service enter into a contract for a lease of trucks. T&T is a merchant who deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises

Accepted Answer

A)  automatically. 
B)  only if the lessee asks for such a warranty. 
C)  only if the lessor expresses such a warranty. 
D)  only in conjunction with sales contracts, not lease contracts. 
A)  automatically. 
B)  only if the lessee asks for such a warranty. 
C)  only if the lessor expresses such a warranty. 
D)  only in conjunction with sales contracts, not lease contracts.

Question 5

Merchants are not required to warrant that the goods they sell are fit for their ordinary purpose.

Accepted Answer

A) True 
 B)False

Question 6

Medical Equipment Supply Company and Natural Rehabilitation Center enter into a contract for a lease of a certain number of wheelchairs. Medical Equipment assures the lessee that it has valid title to the goods. Under the UCC, this type of title warranty arises

Accepted Answer

A)  automatically. 
B)  only if the buyer asks for such a warranty. 
C)  only if the seller expresses such a warranty. 
D)  only if the seller actually has valid title to the goods. 
A)  automatically. 
B)  only if the buyer asks for such a warranty. 
C)  only if the seller expresses such a warranty. 
D)  only if the seller actually has valid title to the goods.

Question 7

Equipment Manufacturing Company tells First Choice Supplies, Inc., that it needs an adhesive to do a particular job. First Choice provides a certain brand. When it does not perform to Equipment Manufacturing's speci?fications, Equipment Manufacturing sues First Choice, which claims, "We didn't expressly promise anything." What should Equipment Manufacturing argue?

Accepted Answer

The buyer should argue that the seller b

Question 8

Grande Floors, Inc., and Home Decor Stores enter into a contract for a sale of carpeting. Grande Floors, a merchant who deals in goods of the kind sold, makes express warranties in connection with the sale. Under the UCC, at the time a contract is formed, an express warranty can be disclaimed or modified

Accepted Answer

A)  by clear, conspicuous language called to the buyer's attention. 
B)  by implied affirmations of fact relating to the goods. 
C)  in any way that the seller sees fit for the ordinary purpose. 
D)  in no way. 
A)  by clear, conspicuous language called to the buyer's attention. 
B)  by implied affirmations of fact relating to the goods. 
C)  in any way that the seller sees fit for the ordinary purpose. 
D)  in no way.

Question 9

Regal Autos, Inc., sells cars to consumers. To avoid liability for oral ex?press warranties, each Regal sales agreement should note that a car is sold

Accepted Answer

A)  as is. 
B)  in perfect condition. 
C)  subject to warranties included in the written contract only. 
D)  with no known defects. 
A)  as is. 
B)  in perfect condition. 
C)  subject to warranties included in the written contract only. 
D)  with no known defects.

Question 10

Warranties of title do not arise in most sales contracts.

Accepted Answer

A) True 
 B)False

Question 11

Stella bought a cup of coffee at the Roasted Bean Drive-Thru. The coffee had been heated to 190 degrees and consequently had dissolved the inside of the cup. When Stella lifted the lid, the cup collapsed, spilling the contents on her lap. To recover for third-degree burns on her thighs, Stella filed a suit against the Roasted Bean. Can Stella recover for breach of warranty? Explain.

Accepted Answer

Yes, Stella can recover for a breach of

Question 12

Quade is an expert in twentieth-century art. Rachel visits Quade's gallery, seeking to buy artwork as an investment. Quade shows her a painting that in his opinion is by Picasso. Quade's statement is

Accepted Answer

A)  an express warranty. 
B)  an implied warranty. 
C)  an opinion. 
D)  puffery. 
A)  an express warranty. 
B)  an implied warranty. 
C)  an opinion. 
D)  puffery.

Question 13

General descriptions take precedence over inconsistent samples.

Accepted Answer

A) True 
 B)False

Question 14

A full warranty requires free repair or replacement of any defective part.

Accepted Answer

A) True 
 B)False

Question 15

A seller is not required to give a written warranty for consumer goods sold.

Accepted Answer

A) True 
 B)False

Question 16

Only a statement made after a contract is entered into can be an express warranty.

Accepted Answer

A) True 
 B)False

Question 17

An implied warranty or merchantability and an implied warranty of fitness for a particular purpose cannot exist in a single transaction.

Accepted Answer

A) True 
 B)False

Question 18

To constitute an express warranty, a representation must be in writing.

Accepted Answer

A) True 
 B)False

Question 19

Livestock Feedlot orders one hundred sacks of cattle feed from MegaNutrient Feed, Inc. Each sack is stamped with the phrase "Twenty percent protein." This is

Accepted Answer

A)  an express warranty. 
B)  an implied warranty. 
C)  a warranty of title. 
D)  puffery. 
A)  an express warranty. 
B)  an implied warranty. 
C)  a warranty of title. 
D)  puffery.

Question 20

Implied warranties can arise from a "usage of trade."

Accepted Answer

A) True 
 B)False

Exam 23: Warranties

Aerospace, Inc., makes and sells flight navigation equipment, through inde?pendent salespersons, to retailers for resale to consumers. The Magnuson-Moss Warranty Act covers

A seller who makes a statement that relates to the value or worth of the goods creates an express warranty.

A warranty against infringement is a promise by the seller that the prod?uct is free from any patent, trademark, or copyright claims of a third person.

Trucks & Trailers, Inc. (T&T), and United Delivery Service enter into a contract for a lease of trucks. T&T is a merchant who deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises

Merchants are not required to warrant that the goods they sell are fit for their ordinary purpose.

Medical Equipment Supply Company and Natural Rehabilitation Center enter into a contract for a lease of a certain number of wheelchairs. Medical Equipment assures the lessee that it has valid title to the goods. Under the UCC, this type of title warranty arises

Regal Autos, Inc., sells cars to consumers. To avoid liability for oral ex?press warranties, each Regal sales agreement should note that a car is sold

Warranties of title do not arise in most sales contracts.

Quade is an expert in twentieth-century art. Rachel visits Quade's gallery, seeking to buy artwork as an investment. Quade shows her a painting that in his opinion is by Picasso. Quade's statement is

General descriptions take precedence over inconsistent samples.

A full warranty requires free repair or replacement of any defective part.

A seller is not required to give a written warranty for consumer goods sold.

Only a statement made after a contract is entered into can be an express warranty.

An implied warranty or merchantability and an implied warranty of fitness for a particular purpose cannot exist in a single transaction.

To constitute an express warranty, a representation must be in writing.

Livestock Feedlot orders one hundred sacks of cattle feed from MegaNutrient Feed, Inc. Each sack is stamped with the phrase "Twenty percent protein." This is

Implied warranties can arise from a "usage of trade."

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