Chapter 21
_________ are not expressly stated in the sales or lease contract but instead are __________. Question content area bottom Part 1 A. Implied warranties; written in the addendum B. Implied warranties; implied by law C. Express warranties; implied by trade usage D. Express warranties; implied by law E. Express warranties; implied by custom
B. Implied warranties; implied by law
Which of the following is an INCORRECT statement regarding the implied warranty of fitness for a particular purpose? Question content area bottom Part 1 A. It can apply to a transaction involving a non-merchant lessor. B. It is also known as the implied warranty of merchantability. C. It can apply to a transaction involving a merchant lessor. D. It can apply to a transaction involving a non-merchant seller. E. It can apply to a transaction involving a merchant seller.
B. It is also known as the implied warranty of merchantability.
The warranty of no interference is also known as the _____. Question content area bottom Part 1 A. limited warranty B. express warranty C. warranty of quiet possession D. full warranty E. warranty of good title
C. warranty of quiet possession
Which of the following is an example of an express warranty? Question content area bottom Part 1 A. "This car is worth a fortune." B. "This is the best coffee in the world." C. "This car will go 100 miles per hour." D. "This is the best used car in town." E. "This house paint will last forever."
C. "This car will go 100 miles per hour."
Under the _____ test, a large staple found in a salad that causes injury to a person would violate the warranty of fitness for human consumption. Question content area bottom Part 1 A. reasonable expectation B. express warranty C. implied warranty of fitness for a particular purpose D. foreign substance E. consumer safeguard
D. foreign substance
For a warranty to qualify as a(n) _____ warranty, the warrantor must guarantee that a defective product will be repaired or replaced free during the warranty period. Question content area bottom Part 1 A. qualified B. limited C. exclusive D. full E. conditional
D. full
The Magnuson-Moss Warranty Act is a _____ statute that regulates _____ warranties on consumer products. Question content area bottom Part 1 A. state; written B. model; oral C. state; oral D. federal; written E. federal; oral
D. federal; written
Which of the following is an example of a breach of an implied warranty of fitness for human consumption? Question content area bottom Part 1 A. A chicken bone is found in a deep fried chicken wing. B. A peach pit is found in a peach pie. C. An ice cube is found in a fast-food soft drink. D. A pit is found in a olive from the olive bar. E. A nail is found in a peach pie.
E. A nail is found in a peach pie.
Which of the following is NOT an example of an implied warranty of merchantability? Question content area bottom Part 1 A. The goods conform to the buyer's expectations. B. The goods must conform to any promise or affirmation of fact made on the container or label. C. The goods must be of an even kind, quality, and quantity within each unit. D. The goods must be fit for the ordinary purposes for which they are used. E. The goods must be adequately contained, packaged, and labeled.
A. The goods conform to the buyer's expectations.
Cho wants to buy lumber to build a small deck in her backyard. She goes to Sunyil's Lumber Yard to purchase the lumber and describes to Sunyil, the owner of the lumber yard, the size of the deck she intends to build. Cho also tells Sunyil that she is relying on him to select the right lumber for the project. Sunyil selects the lumber and states that the lumber will serve Cho's purpose. Cho buys the lumber and builds the deck. The deck collapses because the lumber was not strong enough to support it. Cho _____. Question content area bottom Part 1 A. can sue Sunyil for breach of the implied warranty of fitness for a particular purpose B. can sue Sunyil for violating the implied warranty of fitness C. has no remedy because she should have picked out her own lumber D. can sue Sunyil for violating the foreign substance test E. has no remedy because there has been no breach of the implied warranty of fitness for a particular purpose
A. can sue Sunyil for breach of the implied warranty of fitness for a particular purpose
A warranty _____ negates express and implied warranties. Question content area bottom Part 1 A. disclaimer B. deed C. ratification D. revocation E. rescission
A. disclaimer
The UCC contains an implied warranty of _________. This implied warranty attaches to the sale or lease of goods if the seller or lessor has made statements that the goods _________. Question content area bottom Part 1 A. fitness for a particular purpose; will meet the buyer's or lessee's particular needs B. merchantability; will meet the buyer's or lessee's needs C. fitness for human consumption; are the best in the country D. title; will meet the buyer's or lessee's needs E. fitness for a particular purpose; are the best in the country
A. fitness for a particular purpose; will meet the buyer's or lessee's particular needs
Written disclaimers must be conspicuously displayed to be valid. The courts construe conspicuous to mean noticeable to a(n) _____ person. Question content area bottom Part 1 A. reasonable B. unsuspecting C. intelligent D. uneducated E. educated
A. reasonable
The UCC incorporates the implied warranty of fitness for human consumption within _____. Question content area bottom Part 1 A. the implied warranty of merchantability B. the implied warranty of title C. the implied warranty of fitness for a particular purpose D. express warranty theory E. the implied warranty against encumbrances
A. the implied warranty of merchantability
With the _____, the seller warrants that the goods sold are delivered free from any third-party security interests, liens, or encumbrances that are unknown to the buyer. Question content area bottom Part 1 A. warranty of no security interests B. limited warranty C. warranty of no interference D. full warranty E. express warranty
A. warranty of no security interests
Which of the following is an INCORRECT statement regarding statements of opinion? Question content area bottom Part 1 A. It is often difficult to determine whether a seller's statement is an affirmation of fact or a statement of opinion. B. Puffing creates an express warranty. C. A used car salesperson's claim that "This is the best used car available in town" does not create an express warranty. D. An affirmation of the value of goods does not create an express warranty. E. A used car salesperson's proclamation that "Others would gladly pay $20,000 for this car" does not create an express warranty.
B. Puffing creates an express warranty.
An _____ is created when the seller affirms that the goods he or she is selling meet certain standards of quality, description, performance, or condition. Question content area bottom Part 1 A. implied warranty against encumbrances B. express warranty C. implied warranty of merchantability D. implied warranty of fitness for a particular purpose E. implied warranty of title
B. express warranty
A(n) _____ is a seller's express or implied assurance to a buyer that the goods sold meet certain quality standards. Question content area bottom Part 1 A. quasi-contract B. warranty C. addendum D. codicil E. condition
B. warranty
The ________ stipulates that sellers or lessors who make _______ warranties related to consumer products are forbidden from disclaiming or modifying the implied warranties of merchantability and fitness for a particular purpose. Question content area bottom Part 1 A. UCC 2.313; implied B. Magnuson-Moss Warranty Act; express written C. UCC 2.313; express written D. Magnuson-Moss Warranty Act; implied E. UCC 2A.210; express written
B. Magnuson-Moss Warranty Act; express written
The doctrine of _____, or "let the buyer beware," governed the law of sales and leases for centuries. Question content area bottom Part 1 A. pro hac vice B. esse quam videri C. caveat emptor D. res ipsa loquitur E. post hoc ergo propter hoc
C. caveat emptor
Which test has a majority of states adopted to determine the merchantability of food products? Question content area bottom Part 1 A. natural substance B. foreign substance C. consumer expectation D. consumer safeguard E. implied warranty of fitness for a particular purpose
C. consumer expectation
Which of the following is NOT a special type of warranty that the UCC imposes on sellers and lessors of goods? Question content area bottom Part 1 A. good title B. no security interests C. express D. against infringements E. no interference
C. express
Under the _____ test, a food product is non-merchantable if a foreign object in that product causes injury to a person. Question content area bottom Part 1 A. express warranty B. reasonable expectation C. foreign substance D. consumer safeguard E. implied warranty of fitness for a particular purpose
C. foreign substance
With the warranty of _____, 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. Question content area bottom Part 1 A. eminent domain B. habitability C. quiet possession D. exclusive dominion E. proprietary exclusivity
C. quiet possession
The implied warranty of merchantability _________ to the sale of a coffee pot that is sold by a merchant who is in the business of selling kitchen appliances. The implied warranty of merchantability ________ when someone sells a coffee pot at her garage sale. Question content area bottom Part 1 A. applies; applies B. does not apply; applies C. applies; does not apply D. sometimes applies; always applies E. does not apply; does not apply
C. applies; does not apply
Which of the following is NOT required by the implied warranty of merchantability? Question content area bottom Part 1 A. The goods must be adequately packaged. B. The goods must conform to any promise or affirmation of fact made on the label. C. The quality of goods must pass without objection in the trade. D. The goods must conform to any pre-sale statement of opinion made by the seller. E. Fungible goods must meet a fair average or middle range of quality.
D. The goods must conform to any pre-sale statement of opinion made by the seller.
Under the _____ test, the court asks what a consumer would expect to find or not find in food or drink that he or she consumes. Question content area bottom Part 1 A. foreign substance B. commercial impracticability C. consumer safeguard D. consumer expectation E. natural substance
D. consumer expectation
Which of the following warranty disclaimers would NOT prevent the buyer from recovering damages against the seller? Question content area bottom Part 1 A. A statement in an automobile purchase contract that the car is being sold as is B. A statement in an automobile purchase contract that the car is being sold with all faults C. A statement in an automobile purchase contract that the buyer waives all rights to sue for a violation of any implied warranty of merchantability D. A statement in an automobile purchase contract that the seller makes no representations as to the condition of this car E. A statement waiving the buyer's rights buried in the middle of an automobile purchase contract in the same font and case as the rest of the contract
E. A statement waiving the buyer's rights buried in the middle of an automobile purchase contract in the same font and case as the rest of the contract
_____ is a seller's commendation of goods that does not create an express warranty. Question content area bottom Part 1 A. Stipulating B. Guaranteeing C. Grifting D. Qualifying E. Puffing
E. Puffing
Which of the following does NOT meet the UCC conspicuousness requirement for effective warranty disclaimer language? Question content area bottom Part 1 A. a typeface that is larger than the rest of the body of a sales contract B. different-color typeface C. a heading printed in uppercase letters D. a typeface that is in a different style than the rest of a lease contract E. a typeface that is smaller than the rest of the body of a sales contract
E. a typeface that is smaller than the rest of the body of a sales contract
Ingersoll-Rand owns a heavy-duty crane. A thief steals the crane and sells it to Turner Construction. Turner Construction does not know that the crane is stolen. If Ingersoll-Rand discovers that Turner Construction has the equipment, ________. Turner Construction, in turn, ________. Question content area bottom Part 1 A. it can reclaim it; can recover against no one B. it may not reclaim it; can recover against the thief for breach of the warranty of title C. it may not reclaim it; can recover against no one D. it can reclaim it; cannot recover against the thief for breach of the warranty of title E. it can reclaim it; can recover against the thief for breach of the warranty of title
E. it can reclaim it; can recover against the thief for breach of the warranty of title
A warranty that covers the costs of parts but not the labor to fix a defective product is a(n) _____ warranty. Question content area bottom Part 1 A. unconditional B. full C. unconscionable D. implied E. limited
E. limited
With the _____, the seller warrants that he or she has valid title to the goods he or she is selling and that the transfer of title is rightful. Question content area bottom Part 1 A. express warranty B. warranty of no interference C. limited warranty D. full warranty E. warranty of good title
E. warranty of good title