BUS 204 Ch. 23

Which of the following are implied warranties? Choose 3 answers.

1. merchantability 2. prior dealing or trade usage 3. fitness for a particular purpose

Ahmir agrees to purchase a shipment of oriental rugs from Oriental Rug Company for the price of $50,000, to be delivered on August 15. On July 15, Ahmir notifies Oriental that he no longer wants to purchase the rugs. Oriental spends $1,000 to advertise the rugs and obtains a new purchaser who buys the rugs for $40,000. Oriental then sues Ahmir for breach of contract. If Oriental is successful in its breach of contract suit against Ahmir, Oriental may receive:

$11,000 from Ahmir.

What does the Magnuson-Moss Warranty Act require? Choose 2 answer choices.

1. The address of the person to contact for warranty services. 2. The name of the person to contact for warranty services.

Which of the following must a plaintiff prove when suing based on an express warranty for a defective product? Choose 3 answers.

1. The seller made a statement of fact to the buyer about the quality or uses of the product. 2. One of the buyer's reasons for the purchase is the product warranty. 3. The seller breached the warranty.

Which of the following must a plaintiff prove when suing based on an implied warranty of fitness for a particular purpose? Choose 2 answers.

1. the buyer told the seller of his or her particular needs from the product 2. the seller stated the product would meet the buyer's particular needs

implied warranty of fitness for a particular purpose

A warranty that goods sold or leased are fit for a particular purpose. The warranty arises when any seller or lessor knows the particular purpose for which a buyer or lessee will use the goods and knows that the buyer or lessee is relying on the skill and judgment of the seller or lessor to select suitable goods.

An implied warranty of fitness for a particular purpose may be properly disclaimed by which of the following?

a written "as is" statement

Which of the following implied warranties means the product is reasonably fit for the ordinary purposes for which the product is used?

an implied warranty of merchantability

express warranty

A seller's or lessor's oral or written promise, ancillary to an underlying sales or lease agreement, as to the quality, description, or performance of the goods being sold or leased.

Implied Warranty of Merchantability

A warranty that goods being sold or leased are reasonably fit for the ordinary purpose for which they are sold or leased, are properly packaged and labeled, and are of fair quality. The warranty automatically arises in every sale or lease of goods made by a merchant who deals in goods of the kind sold or leased.

A salesperson says to a customer, "The battery on this leaf blower will last for one hour of use." May the customer sue on an express warranty if the leaf blower dies after 30 minutes of use?

Yes, because an express warranty may be in writing or may be a statement verbally given to the buyer at the time of the sale.

implied warranty

A warranty that the law derives by implication or inference from the nature of the transaction or the relative situation or circumstances of the parties.

Which of the following implied warranties means the warranty arose from practices used in the industry for the product?

implied warranty from prior dealings or trade custom

Linda wants to buy some equipment and needs computer software to use the equipment. Linda asks the salesperson if the software is Mac-compatible because she owns only one computer and it is a Macbook. The salesperson states that the computer software is Mac-compatible and many of his customers use the software on their Apple computers. The software box offers no information regarding operating system requirements. When Linda arrives home and opens the package, she discovers the software is not Mac-compatible. The store states it will not accept returns of opened software, and the salesperson says he was relying on what other customers told him. What will be the result if Linda files a lawsuit?

Linda wins under implied warranty of fitness for a particular purpose.

Mulligan Pro Shop agrees to provide 10,000 grade AAAAA golf balls to Golf Kingdom each month for the next four months. For the first three months, Mulligan delivers 10,000 grade A golf balls instead, and Golf Kingdom accepts the delivery. In month four, Mulligan again delivers 10,000 grade A golf balls to Golf Kingdom, and Golf Kingdom rejects the shipment. If Mulligan sues Golf Kingdom for breach of contract:

Mulligan will win, because Golf Kingdom accepted the prior nonconforming shipments.

An express warranty is properly disclaimed if the disclaimer:

is given to the buyer at the time of sale.

What must a plaintiff prove in an express warranty case?

Buyer reliance on the seller's promises

Which of these situations are governed by the Magnuson-Moss Warranty Act? Choose 2 answer choices.

1. A fan is selling for $100, and the manufacturer offers a full warranty. 2. A fan is selling for $34, but the manufacturer does not want to offer a full warranty.

In which of these situations does an express warranty exist? Choose 2 answer choices.

1. Crane Outdoor Shop shows products on the showroom floor as examples of what they sell, but all purchases are made online and another sample of that item is delivered to the customer's home. 2. Crane Outdoor Shop sells only online. The product postings include detailed descriptions of the features, but no pictures.

In many states, a person must be in what position to have standing to sue for the breach of a product's implied warranty?

The buyer must be in privity of contract with the defendant.

You want to buy a used car. You see an ad stating that a late-model car is for sale at a good price. You call the seller of the car and schedule a time for you to test drive it. While you are looking over the car, the seller says it is a great car, it rides smoothly, it is a good car for families, and the car also gets great gas mileage at 32 miles per gallon of gas. All of the seller's statements convince you to purchase the car. Which of the following creates an express warranty?

The car gets 32 miles per gallon of gas.

Erika was planning her first cross country bike trip. She wanted a bike that would handle rough terrain easily because part of the trip would be through Kings Canyon National Park. Salisar is a salesman at Bikes by the Bay, a specialty bike store near Erika. Erika explains the details of the strenuous trip she is planning and states that she needs a very sturdy mountain bike that will handle it. Salisar recommends the Crosstrain 2000, a bike his store is pushing that month because both the store and the salesperson get a bonus for each bike sold. Erika purchases the bike and begins her adventure. Twenty miles into her journey, the front axle breaks due to the rough terrain, causing Erika to plunge down a steep hillside and sustain serious injuries. In advising Erika to purchase the Crosstrain 2000 for her trip, Salisar:

breached the implied warranty of fitness for a particular purpose.

Which of the following implied warranties means the product will be suitable for the particular use that the buyer intends?

implied warranty of fitness for a particular purpose

If a consumer falls when a step on a new ladder breaks, what warranty could apply?

implied warranty of merchantability

Best Dollar Store publishes an advertisement in the local newspaper promoting its new baby diapers that are good for the environment. The advertisement states that the diapers are made from entirely biodegradable materials and that each diaper will completely biodegrade within two months and become a natural part of the soil. Leon is very concerned about the environment and has created a compost heap in the pasture behind his home. Leon purchases a package of the diapers for his child, and, as they are soiled, he adds them to the compost heap. Six months later, the diapers have not even begun to degrade. Best Dollar Store has violated:

its express warranty that the diapers will biodegrade within two months.

Wilson and Everett have a contract under which Everett is to supply to Wilson 5,000 sets of bicycle spokes by September 15. The contract provides that any lawsuit for breach of contract must be brought within three months of the breach. Everett delivers the 5,000 bicycle spokes to Wilson on September 15. Wilson refuses the delivery, however, because half of the spokes are broken. Everett refuses, after repeated requests from Wilson, to replace the shipment. On January 10, Wilson files a lawsuit against Everett for breach of contract. Wilson's lawsuit against Everett for breach of contract:

will not be dismissed because parties cannot reduce the period for bringing such a lawsuit to less than one year.