Exam 21: Warranties

Only written express warranties are valid.

A ________ is a warranty in which the lessor warrants that no person holds a claim or an interest in the goods that arose from an act or omission of the lessor that will interfere with the lessee's enjoyment of his or her leasehold interest.

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

Kirsten just bought a car that had a one-year warranty stating that it covered the cost of parts, but not labor. It also stated that the warranty only covered the powertrain, and no other part. What kind of warranty did Kirsten's car have?

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

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

Implied warranties of quality cannot be disclaimed.

An express warranty can only be limited if the warranty disclaimer and the warranty can be reasonably construed with each other.

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

Unless properly disclaimed, a warranty is implied that sold or leased goods are fit for the ordinary purpose for which they are sold or leased, as well as other assurances, known as the implied warranty of ________.

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

Thoroughly and completely explain express warranties.

A warranty disclaimer is considered to be conspicuous when ________.

A warranty that is created when a seller or lessor makes an affirmation that the goods he or she is selling or leasing meet certain standards of quality, description, performance, or condition is known as a(n) ________ warranty.

Which of the following would constitute an implied warranty?

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.

The three most common forms of implied warranties are the implied warranty of merchantability, the implied warranty of fitness for human consumption, and the implied warranty of fitness for a particular purpose.

A seller's or lessor's statement of opinion of the goods does not create an express warranty.

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

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?