BSAD 234 - Exam 3: Warranties
___________ MUST be disclaimed in writing
Implied Warranty of Fitness for a Particular Purpose
The ___________ Act applies only to sales by merchants to consumers
Magnusson-Moss
Any __________ of the product, written or oral, made by the seller, creates a warranty.
description
Implied Warranty of Fitness for a Particular Purpose MUST be disclaimed __________
in writing
Unlike the Implied Warranty of Merchantibility, the Fitness for a Particular Purpose Warranty does not absolutely require that the seller be a ___________
merchant
the Implied Warranty of Merchantibility arises when a *_________* sells a good regardless of customer (consumer or other business)
merchant
A casual, non-merchant seller has the _________ imposed upon him if he holds himself out to his buyer as knowing that the item sold will perform for the particular purpose conveyed to him by his buyer.
Implied Warranty of Fitness for a Particular Purpose
The _________ occurs when the buyer makes known to the seller prior to the sale a particular use he plans to make of the item; the seller then recommends a particular item to the buyer.
Implied Warranty of Fitness for a Particular Purpose
According to the _______, merchant seller automatically guarantees his buyer that the item he is selling the buyer is of average quality or better and is fit for the ordinary purposes for which the item is used.
Implied Warranty of Merchantability
if seller is not a merchant, the __________ does not arrise
Implied Warranty of Merchantability
What are the two kinds of implied warranties?
Implied Warranty of Merchantability, Implied Warranty of Fitness for a Particular Purpose
Any express, written warranty that doesn't meet the conditions for a "Full" Warranty has to be called a "______" Warranty
Limited
According to the ____________ under the UCC, to effectively disclaim the warranty of merchantability under the Implied Warranty of Merchantability, you must use the word "merchantability"
Magic Word requirement
The _________ is a rare piece of federal legislation in contract law, an area which is largely state law
Magnuson-Moss Act
If the sale is by a merchant to another merchant (e.g., a wholesaler selling to a retailer) the _______ Act does not apply.
Magnusson-Moss
According to the ________, if the seller gives the buyer an express, written warranty, then he cannot disclaim the implied warranties
Rule on Disclaimers
In oral warranties, the party claiming that the warranty arose must bear the __________, showing that the statement was in fact made.
burden of proof
A description in a(n) ______ creates a warranty, that the good conform to the description.
catalog
The Magnusson-Moss Act is basically a piece of ________ legislation and applies only in the context of a sale by a ____ to a consumer
consumer protection, merchant
An oral statement made in a "sales pitch" creates a(n) _______
express warranty
What are the two kinds of warranties?
express, implied
every time a salesman describes something _____ about a product, he has created an express warranty the the product conforms to that statement
factual
Disclaimers on warranties have to be made before the sale is ________.
final
A _____ warranty means that if product is defective, seller will replace it with no losses placed on buyer
full
To qualify as a _____Warranty, the seller has to guarantee the buyer against any loss or expenses at all if the warranty is broken. The seller has to bear any shipment costs, repair costs, and can't place restrictions on his express warranty.
full
One part of the Magnuson-Moss Act is designed as a requirement that the merchant seller make a standardized disclosure to the consumer buyer. Namely, all express written warranties must be categorized by the Merchant seller into one of two categories: a "_____" Warranty, or a "_____" Warranty
full, limited
The Magnuson-Moss Act distinguished between _____ and ________ warranties
full, limited
the __________ arises when a *merchant* sells a good regardless of customer (consumer or other business)
implied warranty of merchantability
Any restrictions on the following statement make a warranty ____: if product is defective, seller will replace it with no losses placed on buyer
limited
According to the Magic Word requirement, under the UCC, to effectively disclaim the warranty of merchantability under the Implied Warranty of Fitness for a Particular Purpose, you must use the word "______"
merchantability
The Implied Warranty of Fitness for a Particular Purpose can arise if a _________ seller holds himself out to the buyer as knowing about the purpose of the product due to knowledge or experience
non-merchant
Two requirements of the Implied Warranty of Merchantibility: item is ________ and ____________
of average quality or better, fit for ordinary purposes
The Implied Warranty of Merchantability can be disclaimed ________ or _________
orally, in writing
The use of an in-store ______ or _________ also creates a warranty that the good conform to the model used.
sample, display model
A(n) ________ is a guarantee about the nature or quality of the product that is a part of the contract; the guarantee is given by the seller in a sales contract to the buyer.
warranty