Question 1

Only written express warranties are valid.

Accepted Answer

A) True 
 B)False

Question 2

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.

Accepted Answer

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

Question 3

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.

Question 4

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?

Accepted Answer

A)  full warranty 
B)  limited warranty 
C)  disclaimer warranty 
D)  implied warranty of fitness for a particular purpose

Question 5

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

Accepted Answer

A)  It can be implied as an understanding between the buyer and seller. 
B)  It should be conspicuous and noticeable. 
C)  It need only be present in the contract. 
D)  It must be published in the local newspaper before actually being displayed.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Implied warranties of quality cannot be disclaimed.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

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 ________.

Accepted Answer

A)  volatility 
B)  cause of action 
C)  assertion 
D)  merchantability

Question 11

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

Question 12

Thoroughly and completely explain express warranties.

Accepted Answer

The answer of Thoroughly and completely explain express warranties....

Question 13

A warranty disclaimer is considered to be conspicuous when ________.

Accepted Answer

A)  the seller implies the disclaimer 
B)  a reasonable person is able to notice it 
C)  it is present in the contract 
D)  it is expressed and approved by both seller and buyer

Question 14

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.

Accepted Answer

A)  implied 
B)  conditional 
C)  closed 
D)  express

Question 15

Which of the following would constitute an implied warranty?

Accepted Answer

A)  affirmation of the facts of the goods 
B)  description of the goods 
C)  model or sample of the goods 
D)  adequate packaging and labeling of the goods

Question 16

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.

Accepted Answer

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

Question 17

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.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Question 20

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

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) ________.