Question 1

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

Accepted Answer

For a warranty to qualify as a full warr

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

In a shipment of containers of widgets, which of the following would be considered an implied warranty?

Accepted Answer

A)  that the seller of the widgets has given an oral approval of the widgets in the containers 
B)  that the description of the uses of widgets is mentioned in the contract 
C)  that the widgets are of an even kind, quality, and quantity within each unit 
D)  that a sample of the widget was given to the buyer for inspection 
A)  that the seller of the widgets has given an oral approval of the widgets in the containers 
B)  that the description of the uses of widgets is mentioned in the contract 
C)  that the widgets are of an even kind, quality, and quantity within each unit 
D)  that a sample of the widget was given to the buyer for inspection

Question 4

A statement of opinion may be which of the following?

Accepted Answer

A)  a type of guarantee 
B)  an affirmation of the value of the goods 
C)  an implied assurance not expressly stated 
D)  an explicit description of the goods 
A)  a type of guarantee 
B)  an affirmation of the value of the goods 
C)  an implied assurance not expressly stated 
D)  an explicit description of the goods

Question 5

The ________ is used to determine merchantability of food products based on what the average buyer is supposed to find in particular food products.

Accepted Answer

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

Question 6

What was the doctrine of caveat emptor in sales or lease contracts?

Accepted Answer

A)  It was a law that balanced risk of loss between seller and buyer. 
B)  It was a law that stated the risk of loss was on the buyer. 
C)  It was a law that gave more protection to the buyer in a sales contract. 
D)  It was a law that stipulated the issue of warrants in sale or lease transactions. 
A)  It was a law that balanced risk of loss between seller and buyer. 
B)  It was a law that stated the risk of loss was on the buyer. 
C)  It was a law that gave more protection to the buyer in a sales contract. 
D)  It was a law that stipulated the issue of warrants in sale or lease transactions.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

The warranty against infringements protects trademarks and copyright claims.

Accepted Answer

A) True 
 B)False

Question 9

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?

Accepted Answer

A)  express warranty 
B)  statement of opinion 
C)  implied warranty of fitness for human consumption 
D)  implied warranty of fitness for a particular purpose 
A)  express warranty 
B)  statement of opinion 
C)  implied warranty of fitness for human consumption 
D)  implied warranty of fitness for a particular purpose

Question 10

A warranty that guarantees that a defective product will be repaired or replaced free during the warranty period is known as a(n) ________.

Accepted Answer

A)  implied warranty 
B)  full warranty 
C)  disclaimer warranty 
D)  limited warranty 
A)  implied warranty 
B)  full warranty 
C)  disclaimer warranty 
D)  limited warranty

Question 11

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 12

If a seller is a merchant with respect to certain goods, there is an implied warranty that the quality of the goods must pass without objection in the trade.

Accepted Answer

A) True 
 B)False

Question 13

Explain the different types of warranty disclaimers.

Accepted Answer

The first type is the "as is" disclaimer

Question 14

The ________ is a federal statute that regulates written warranties on consumer products.

Accepted Answer

A)  Purchaser's Act 
B)  Industry Loss Warranty Act 
C)  Magnuson-Moss Warranty Act 
D)  Consumer Warranty Act 
A)  Purchaser's Act 
B)  Industry Loss Warranty Act 
C)  Magnuson-Moss Warranty Act 
D)  Consumer Warranty Act

Question 15

An implied warranty of ________ is a warranty that arises where a seller or lessor warrants that the goods will meet the buyer's or lessee's expressed needs.

Accepted Answer

A)  merchantability 
B)  fitness for a particular purpose 
C)  fitness for human consumption 
D)  good title 
A)  merchantability 
B)  fitness for a particular purpose 
C)  fitness for human consumption 
D)  good title

Question 16

A person selling stolen property would be breaching the warranty of good title.

Accepted Answer

A) True 
 B)False

Question 17

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 18

A retailer is not liable for the express warranties made by manufacturers of goods it sells.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 21: Warranties

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

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

In a shipment of containers of widgets, which of the following would be considered an implied warranty?

A statement of opinion may be which of the following?

The ________ is used to determine merchantability of food products based on what the average buyer is supposed to find in particular food products.

What was the doctrine of caveat emptor in sales or lease contracts?

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

The warranty against infringements protects trademarks and copyright claims.

A warranty that guarantees that a defective product will be repaired or replaced free during the warranty period is known as a(n) ________.

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.

If a seller is a merchant with respect to certain goods, there is an implied warranty that the quality of the goods must pass without objection in the trade.

Explain the different types of warranty disclaimers.

The ________ is a federal statute that regulates written warranties on consumer products.

An implied warranty of ________ is a warranty that arises where a seller or lessor warrants that the goods will meet the buyer's or lessee's expressed needs.

A person selling stolen property would be breaching the warranty of good title.

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 retailer is not liable for the express warranties made by manufacturers of goods it sells.

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

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

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