Blaw 202 Midterm 2

All of the following statements about express warranties are true except

Separate consideration is required to bind a warranty made at the time of the sale.

Which of the following statements made by the seller probably will not form an express warranty?

This looks beautiful on you.

If the theory of privity of contract still applied, it would be difficult for purchasers injured by defective goods to sue manufacturers.

True

The fact that a seller has a security interest in the goods, by virtue of a C.O.D. provision or any other device, has no effect on the question of whether the title or the risk of loss has passed to the buyer.

True

When negotiable documents of title to goods are sold, the risk of loss and the title to the goods pass to the buyer when the documents are delivered to the buyer.

True

With used or secondhand goods, what is fit for normal use will be

a lower standard than with new goods.

Which means of payment gives the buyer credit by postponing the time for payment?

a promissory note

When a buyer shows in some way that the goods conform to the contract, the buyer has made a(n):

acceptance of the goods.

A warranty is limited if:

all of the above

Strict tort liability is applied:

all of the above

The defendant in a defective product suit may be

all of the above

In a sale on approval, the approval may be established by showing:

all of the above.

When one party informs another party that performance will not be given in advance of contract deadlines:

an anticipatory repudiation has occurred

A party to a sales contract who is afraid that the other party will not perform may seek to gain additional confidence by demanding some form of:

assurance

After a proper demand has been made, for assurance of performance to be adequate, it must:

be sufficient to assure a reasonable person that the contract will be performed.

A consignment sale:

causes title to transfer directly from the consignor to the buyer in the event of a sale.

Bills of lading and warehouse receipts are described as:

documents of title.

An owner of personal property may be barred from denying the right of another person to sell the property under the theory of:

estoppel.

After an attempted delivery of nonconforming goods, if time still remains for performance under the contract, a cure may be planned through a second tender when notice is given:

even if the cure will occur after the time for performance under the contract.

A manufacturer may escape warranty liability if every possible step to make the product safe has been taken.

false

A seller's insurable interest in goods always terminates with the passage of the title to the buyer.

false

An express guarantee is governed by the UCC, and warranties are governed primarily by the common law of contracts.

false

Any warranty that does not provide the complete protection of a full warranty is called a warranty in breach.

false

The person on whom a demand for assurance is made must reply in writing for the assurance to be deemed "adequate."

false

The scope of warranties remains the same regardless of whether the seller is a merchant or a casual seller.

false

To recover liability, the plaintiff must show the defendant was negligent.

false

When a party refuses to perform a contract when the time for performance arises, an anticipatory repudiation has occurred.

false

When a seller packages future goods and marks them for shipment to the buyer, the title to the goods passes to the buyer as soon as the buyer's name is put on the package.

false

Which of the following warranties is created when the buyer relies on the seller to pick out the goods that the buyer requires to meet a stated need?

fitness for particular purpose

The UCC expressly preserves the pre-Code law as to

fraud

Under what type of warranty is the seller obligated to fix or replace a defective product within a reasonable time at no cost to the buyer?

full

Goods that are not yet in existence or are not yet owned by the seller are:

future goods

How do the warranty provisions under the CISG compare to the provisions of the UCC

in most cases identical

An examination of goods excludes any implied warranty with respect to a defect that:

is apparent after a reasonable examination is made.

Instead of taking physical delivery of the goods, merchants dealing in large quantities often prefer to deal with:

negotiable documents of title.

Most courts hold that when a customer takes an item from the shelf in a self-service store, there is:

no sale.

Which of the following transactions ordinarily does not allow for return of the goods?

ordinary sale

In a cash sale that does not require the physical moving of the goods, the:

parties are required to perform concurrently.

Acceptance of goods is not shown by:

payment for the goods sent COD.

Only the parties to a sales contract could sue each other, under the traditional concept of:

privity of contract

The concept of strict tort liability was created by

recent court decisions

There is a transfer of title upon the transfer of goods in a:

sale or return.

If a contractually specified mode of transportation is not available, the:

seller must make delivery by a commercially reasonable substitute.

If an express warranty is false, then

the breach of warranty renders the seller liable just as if the truth of the warranty had been guaranteed.

The obligations of the parties to a sales contract include:

the buyer's duty to pay for the goods.

Unless otherwise agreed, the proper place for the delivery of goods is:

the seller's place of business.

Which of the following parties may not pass good title to a good-faith purchaser?

thief

A delivery is sufficient if it is made in accordance with the terms of the contract to sell.

true

A statement by a seller relating to goods that is part of the basis of the bargain is an express warranty.

true

In a cash sale not requiring the movement of goods, each party has the right to demand that the other perform at the same time.

true

In a contract for the sale of unidentified goods, the seller is not excused from performing the contract because some goods in his or her possession have been destroyed.

true

The UCC imposes a higher degree of good faith on a merchant seller or buyer of goods than on a nonmerchant seller or buyer of goods.

true

The United Nations Convention on Contracts for the International Sale of Goods (CISG) provides for the warranties of merchantability and of fitness for a particular purpose.

true

The requirement of privity of contract to allow recovery in a sales contract has been widely rejected.

true

Unless otherwise agreed, every merchant seller warrants that goods are sold free of any rightful claim by any third party.

true

When a person picks out a specific necktie and purchases it, the transaction involves identified goods.

true

A sales transaction in which a customer in a department store tells the clerk that he or she wants to buy one of the shirts advertised in the newspaper relates to:

unidentified goods

The expense and the risk of return in a sale-or-return situation is:

upon the buyer.

A disclaimer or exclusion of the warranty of merchantability will be invalid:

when it is contained in a writing and is not conspicuously set forth.

When goods are sold at an auction in separate lots, the title to each lot passes:

when the auctioneer announces that the lot in question has been sold to the bidder.

In a contract for delivery at destination:

when the goods are successfully given over to the buyer.