Exam 21: Warranties

An express warranty is created upon description of the goods.

Sam expressed an interest in buying a painting from Jasper, who claimed that the painting was a family heirloom. Jasper's asking price was $15,000, but Sam was only willing to offer $13,000. Jasper told him that it was a very old painting worth a fortune and that others would gladly pay $20,000 for it. He also told him that he was only selling it under its market value because he needed the money immediately. He then implied that Sam could sell it for a higher rate if he wanted. Sam decided to buy the painting for $15,000 on the condition that if he found that the painting was worth less than $15,000, Jasper would have to take the painting back and refund Sam. Which of the following warranties did this sales contract have?

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

Persons who transfer goods without proper title breach the warranty of quiet possession.

Where there has been a breach of warranty, the buyer or lessee may sue the seller or lessor to recover ________ damages.

A commendation of goods made by a seller or lessor that does not create an express warranty is referred to as a(n) ________.

Sellers and lessors are not required to make express warranties.

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

Which of the following is true of how an implied warranty of merchantability is created?

Warranties are the buyer's or lessee's assurance that the goods meet certain standards.

The implied warranty of fitness for human consumption applies to vending machines.

In a limited warranty, the warrantor must guarantee that a defective product will be repaired or replaced free during the warranty period.

A manufacturer is liable for express warranties made by wholesalers and retailers.

What damages are recoverable for a breach of warranty?

Define and explain warranties against infringements. If this warranty is breached, which party(ies) could recover?

An automatic warranty provided by a seller or lessor who is a merchant that regularly deals in goods of the kind sold or leased which warrants that the goods are delivered free of any third-party patent, trademark, or copyright claim is known as ________.

What type of transaction is covered under the Magnuson-Moss Warranty Act?

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?

A disclaimer of the implied warranty of merchantability must be in writing to be valid.

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 ________.