Business Law 25
B,D
If a buyer indicates to a salesperson the purpose of the purchased good, then there will be a(n) ______ warranty for a particular _______. A. trade usage B. implied C. express D. purpose
B,A
in the Classic Case Webster v Blue Ship Tea Room, the issue involved the _______ warranty of ________ of the seafood chowder. A. merchantability B. implied C. fitness for a particular purpose D. express
B,D
A buyer may waive both implied and express warranties by failing to:_______. (Check all that apply.) A. examine all goods that came with an express warranty B. comply with the seller's request to inspect the goods C. request that they be allowed to inspect the goods D. examine goods for which an express warranty was created by a sample or model
D
A buyer may waive their warranty rights by bringing a case against the seller after the UCC or state's set time limit. If the claim is filed after that specified time, the buyer waives their rights by failing to comply with the statute of: _______. A. civil procedure B. the civil rules of procedure C. frauds D. limitations
C
A used car salesman was showing John a car and said, "it is practically like new." John wanted to know how many miles the car actually had on its odometer. The salesman said that "the car has 5,000 miles on it". Which statement represents the express warranty? A. "It is practically like new." B. Neither "the car has 5,000 miles on it" nor "it is practically like new." C. "The car has 5,000 miles on it." D. "The car has 5,000 miles on it" and "it is practically like new."
C
A warranty is an assurance: _______. A. of quality that the contract is in good order and will comply with the UCC B. by one party that the other party has contractual capacity C. by one party that the other party can rely on its representation of fact D. that the resulting sale of goods are in excess of $1,000
C
A warranty of title is defined by: _______. A. agency law B. constitutional law C. the Uniform Commercial Code D. common law
implied
A(n) ______ warranty of quality arises by operation of law.
material
A(n) express warranty is considered to be another _______ term of a contract.
B
According to the Magnuson-Moss Act, if a seller's written warranty is silent about whether it is a full or limited warranty, the act assumes that it is a(n): _______. A. express warranty B. full warranty C. limited warrant D. implied warranty of trade
D
Alan bought a grandfather clock from a clock dealer; however, the clock failed to keep time and either stopped working or slowed down. Alan could ask for his money back since the clock violated the UCC's: _______. A. express warranties B. implied warranty of title C. implied warranty of third parties D. implied warranty of merchantability
D
Ali lent his brand new chainsaw to Ralph, his neighbor. Ralph was using the chainsaw as directed when a piece holding the blade in the handle of the chainsaw fell out, causing the chain to come off of the chainsaw. The chain hit Ralph in the face causing him several severe lacerations. Ralph would have a cause of action against the seller due to the: _______. A. warranty of construction and trade goods B. implied warranty of title C. implied warranty of fitness for a particular purpose D. warranty rights of third parties
A
Alice had recently purchased a treadmill for her home gym. Her daughter, Kim, asked for her mom's permission to use the treadmill. Alice gave her permission, but when Kim started to run on the treadmill, the machine started to violently shake and threw Kim off the treadmill, causing her injury. Alice brought a legal claim against the company on behalf of her daughter, claiming that Kim had a valid claim because of the: _______. A. warranty rights of third parties B. implied warranty of trade usage C. implied warranty of fitness for a particular purpose D. express warranty of use
A
An express warranty is explicitly stated, whereas a(n) ______ is automatically injected into the contract, as a matter of law. A. implied warranty B. explicit warranty C. common law rule of warranty D. implied contract
C
An express warranty is: _______. A. only valid when the goods sold are over $1,000 in value B. only good when it is in writing C. a material term of the contract D. recognized automatically by operation of law in situations where an implied warranty is not applicable to the subject sales transaction
C
An express warranty should not be confused with an implied warranty for the fitness of: _______. A. title B. sale and service C. a particular purpose D. trade
A,C,E
An implied warranty of fitness for a particular purpose is when a seller or lessor knows or has reason to know: _______. (Check all that apply.) A. the seller or lessor does not have to be a merchant B. why the seller or lessor is selling or leasing the goods in question C. that the buyer or lessee is relying on him or her to make the selection D. that the seller or lessor is relying on him or her to make the selection E. why the buyer or lessee is purchasing or leasing the goods in question.
D
Arthur bought some books from a booth at a flea market. Arthur had assumed the owner of the booth was the owner of the books, but much to Arthur's surprise, the police showed up at his door stating that the books were stolen property. Whenever a buyer is unaware that the seller is transferring goods for which no good title passes, the buyer: _______. A. must surrender the goods and take the loss B. will be held liable for criminal charges if the goods were obtained illegally by the seller C. has no legal recourse because the UCC is silent about any warranties where good title is not present D. may treat the contract as in breach
B
Bella attended a sheriff's auction for goods that were seized. If Bella buys something at the auction, will she have warranty of title? A. No, because any auction will not be able to ensure a warranty of title. B. No, because Bella knows that the goods did belong to someone else. C. Yes, because the goods now belong to the sheriff's department, so warranty of title will be intact. D. Yes, because the goods will now be Bella's and so she will automatically have title of warranty because she paid for the goods.
A
Buyer bought a computer which was supposed to be able to run specific software. Unfortunately, the computer did not live up to all its promises. Buyer brought a claim against Seller five years after she discovered the computer would not run her software as promised. Can Buyer successfully bring a warranty claim against Seller? A. No, because she failed to comply with the applicable statute of limitations. B. No, because she should have filed the case immediately when she discovered the computer failed to perform. C. Yes, because the computer failed to live up to the express promises of the seller. D. Yes, because she had discovered the failure of the computer to live up to the promises of the seller within a year of purchase.
C
Exceptions to title warranties occur if they are: _______. A. made orally B. disclaimed only if the seller is obviously unable to guarantee title C. disclaimed or modified by specific language or if the seller is obviously unable to guarantee title D. disclaimed or modified by specific language only
A
If the buyer is aware that there is a problem with the transfer of goods, the buyer: _______. A. is purchasing those goods at their own risk. B. will not risk bad title once he or she pays for the goods. C. will need to give extra consideration to get good title to the goods D. will still get good title because he or she is unaware of the faulty title
A
If the buyer relies on representations, those representations become part of the contract in the form of: _______. A. express warranties B. implied warranty of trade C. implied warranties D. implied warranties of merchantability
A,B,D
If the seller chooses to write up a warranty for any goods sold for more than $15, then the Magnuson-Moss Act states that warranty may contain: _______. (Check all that apply.) A. the procedures necessary to activate the warranty remedies B. names and addresses of warrantors C. the names and addresses of the buyers D. any limitations on the warranty
A
In order to disclaim a warranty, the seller must: _______. A. disclaim it in clear, unambiguous, conspicuous language B. disclaim it in simple, oral terms C. only disclaim it in conspicuous language D. only disclaim it even if the terms are a little ambiguous
A
In the computer software industry, it is an accepted part of the trade that new software should be shipped in shrink-wrapped containers to demonstrate that the software is fresh from the factory. Barbara purchased software from the manufacturer and was very surprised when the box was delivered with no shrink-wrap, and the DVD and other materials were carelessly thrown in the box. Barbara called the manufacturer and said that this was not acceptable since the: _______. A. implied warranty of trade usage has been violated B. implied warrant of third parties has been violated C. implied warranty of merchantability has been violated D. express warranty of digital measures has been violated
C
Jane bought a microwave oven from a store in town. When she got it home, the oven did not heat her dinner or anything she put in it. The failure of the oven to reasonably perform as expected is a violation of what kind of UCC warranty? A. Implied warranties of third parties B. Express warranty C. Implied warranty of merchantability D. Implied warranty of title
A
Jim bought a folding chair for his daughter, Samantha, who was eight years old. The chair was designed especially for children and the tag that was attached to the folding chair said that the chair could only hold a child's weight up to 100 pounds. Anything over 100 pounds would likely break the chair. This language was posted on the tag attached to the chair and in the instruction manual in large, bold letters. Jim had read the disclaimer, but used the chair for a step stool. As soon as he stepped up on the chair, the chair collapsed on him and he injured his ankle in the process. Can Jim bring a successful claim against the seller of the chair? A. No, because there was a clear, conspicuous, unambiguous warning about the weight requirements of the chair. B. Yes, because Jim purchased the chair and as the buyer, the UCC automatically confers all warranties on Jim. C. No, because Jim assumed the risk when he stepped up on the chair. D. Yes, because Jim has the implied warranty of the fitness of purpose to support his claim.
C
John bought a lawnmower that contained the following statement, "Guaranteed to cut grass as long as two feet high". John was delighted since he had let his grass grow up to one foot. When he tried to use the mower, it would work for a few steps, then choke out. John returned the mower and asked for his money back. The mower's failure to perform is a breach of: _____. A. the implied warranty of trade B. the implied warranty of title C. an express warranty D. the implied warranty of merchantability
D
Laurie's new hedge-trimmer failed to work after only 3 days. The written warranty that came with the hedge-trimmer did not specify whether or not the warranty would be a full or limited warranty. Laurie brought the hedge-trimmer back and demanded the store provide a remedy to the situation. According to the Magnuson-Moss Act, Laurie is entitled to: _______. A. a replacement of the defective part with a used part B. a refund only C. nothing. If it is not specified on the warranty, she is not entitled to anything D. replacement of the good or defective part or she is entitled to a refund
C
Lee had just purchased a software package and was looking over the written warranty. The software had cost Lee over $100, and he wanted to make sure that the warranty was sufficient. He was baffled by the language of the warranty, since it was all in legalese and was not readily understandable. Is this a valid written warranty? A. Yes, because as long as it was written -- whether in legalese or not -- it will be counted as a valid written warranty. B. No, because the software was over $100 in value. C. No, because the warranty was written in legalese and not well understood. D. Yes, because the warranty was written in legalese, which is proof the warranty was written by a legal expert.
D
Most jurisdictions choose which of the states' choices for how to regard third-party beneficiaries of warranties? A. Seller's warranties extend to anyone using the goods whether they are hurt or not. B. Seller's warranties extend to the buyer's household members and guests. C. Seller's warranties extend to anyone injured by the good. D. Seller's warranties extend to any reasonable and foreseeable user.
D
Phillip was trying to decide on what kind of car he should buy. The salesperson told him that the Lamborghini was the "fastest car in the world", and "is a real chick magnet". Phillips could not resist, so he bought the car. One week later he brought the car back saying that the car was neither the fastest car in the world and nor had women given him the time of day when he was in the car. Phillip demanded his money back, charging the salesperson made express warranties that proved to be false. Can Phillip get his money back? A. Yes, because the contract was for goods greater than $500, and the salesman made very specific guarantees regarding the car. B. No, because the claims by the salesperson only create an implied warranty of merchantability and are not sufficient to cancel the contract. C. Yes, because the salesman's claims were specific enough to create an express warranty, and thus, Phillip can have the contract canceled. D. No, because the salesman's claim was an example of puffing and does not create an express warranty. It is not a representation of facts.
c
Raj ordered two dozen turquoise necklaces that he would sell at a local store. Because the jewelry was made of natural turquoise, there were variations of color in the stones that were used for the jewelry, so the pieces did not look exactly alike. Can Raj claim that the goods were not merchantable, since the stones in the ring varied in color? A. Yes, because the turquoise should be consistent in color, and thus fails the implied warranty of merchantability. B. Yes, because jewelry must conform to the specifications of the buyer. C. No, because the UCC implied warranty of merchantability allows for some variations would occur in the normal course of trade. D. No, because Raj said nothing about wanting the turquoise to be exactly the same from piece to piece.
C
Seller and Buyer agreed on a selling price for an antique table. Seller told Buyer to inspect the table before writing the bill of sale. Buyer stated an inspection was not necessary. At home, Buyer noticed a significant crack. Can Buyer bring a claim to enforce any express or implied warranties? A. Yes, because the warranties are automatically applied once the Seller sold the table to Buyer. B. No, because once Buyer took the table out the door, she took the table "as is". C. No, because Buyer waived those rights when she refused to inspect the table. D. Yes, because the table failed to fulfill the implied warranty of merchantability.
D
Statements of opinion are often salespersons' exaggerations and are known as: _______. A. warranties of title B. express warranties C. implied warranties D. puffing
D
The Magnuson-Moss Act requires that if a seller decides to issue a written warranty for goods being sold for more than $10, the warranty must specify if it is a(n): _______. A. implied or express warranty B. implied warranty of trade C. warranty of merchantability D. limited or full warranty
A
The UCC changed the law of warranties which was originally covered by: _______. A. the common law B. the United States C. tort law D. the restatement of contracts
B
The UCC recognizes the rights of other parties in addition to the rights of the buyer. This is known as warranty rights of: _______. A. individuals in the trade B. third parties C. the buyer D. the seller
C
The UCC warranty that codifies a reasonable expectation that a good will perform as it should is known as a(n): _______. A. implied warranty of title B. express warranty of performance C. implied warranty of merchantability D. express warranty of function and form
B
The UCC, always diligent in its goal to facilitate the flow and ease of commercial activity, recognizes that a well-accepted course of dealing or trade usage may create implied warranties dependent on the circumstances. This is known as a(n): _______. A. express warranty B. implied warranty of trade usage C. implied warranty of third parties D. implied warranty of merchantability
B
The _______ requires that the seller write up a warranty for any good sold for more than $10. A. Statute of Frauds B. Magnuson-Moss C. Common Law D. UCC
C
The landmark case defining and illustrating the implied warranty of ______ is Webster v. Blue Ship Tea Room, Inc. A. fitness for a particular purpose B. accountability C. merchantability D. title
B,D,E
The states have been given three choices regarding third-party beneficiaries of warranties, including that:_______. (Check all that apply.) A. seller's warranties extend to any reasonable user no matter how remote their connection to the buyer and no matter if they are injured or not B. seller's warranties extend to anyone injured by the good C. seller's warranties extend to immediate family members only D. seller's warranties extend to the buyer's household members and guests E. seller's warranties extend to any reasonable and foreseeable user
C,D
The three basic categories of warranties are ______ warranties, implied warranties of title, and implied warranties of _______. A. trade B. fitness C. express D. quality
B,C,E
There are three basic categories of warranties: _______. (Check all that apply.) A. implied warranties of fabrication and structure. B. implied warranties of title C. implied warranties of quality D. implied warranties of trade goods E. express warranties
b,c
Under _______ law, the only implied warranty is the warranty of _______. a. federal b. common c. assignability d. merchantability
A,B
Under a(n) _______ of a contract, a(n) ______ is impliedly guaranteeing that rights being assigned are valid. A. assignment B. assignor C. delegation D. delagatee
D
Under common law, the only implied warranty is a(n): _______. A. express warranty of opinion B. express warranty C. express warranty of terms and conditions D. warranty of assignability
B
Under the UCC, a warranty of title assumes that the seller (1) has the right to transfer title free and clear of any liens, judgments, or infringements of intellectual property rights of which the buyer does not have knowledge and (2): _______. A. is an employee of the company that is making the sale B. has good and valid title to the goods C. has accurate knowledge of the details of the goods D. has knowledge of the UCC and understands what is required for a sale of goods
A,D
Under the UCC, goods are merchantable if the goods: _______. (Check all that apply.) A. are produced, within the variations permitted by the agreement, of even kind, quality and quantity within each unit and among all units involved B. are declared of excellent quality by anyone in the trade or market of that good C. are fit for any purpose that the good might be used either foreseeable or not D. are able to pass without objection in the trade or market for similar goods
A,B,C
Under the UCC, the implied warranties of quality include the implied warranty of:_______.(Check all that apply.) A. merchantability B. a particular purpose C. trade usage D. goods and services E. quality services and trade goods.
quality
Under the UCC, the implied warranty of ______ includes the implied warranty of merchantability.
quality
Under the UCC, the implied warranty of merchantability includes the implied warranty of _______.
A
When a party "assigns" a contract to another party, the assignor is impliedly guaranteeing that the rights being assigned are: _______. A. valid B. not available to the third party C. void D. up for negotiation
B
When a seller of goods knows or has reason to know why a buyer is buying specific goods and that the buyer is relying on the seller to make the selection, this warranty is: _______. A. the implied warranty of title B. the implied warranty of fitness for a particular purpose C. the implied warranty of quality D. an express warranty of merchantability
B,C,D
Which of the following are warranties of quality? (Check all that apply.) A. Implied warranty of sustainability B. Implied warranty of trade usage C. Implied warranty of fitness for a particular purpose D. Implied warranty of merchantability
C
Which warranty involves a seller's description of a product's physical nature or its use, used to induce a buyer to execute a sales contract, which then becomes part of a contract? A. Implied warranty of title B. Implied warranty of quality C. Express warranty D. Implied warranty of merchantability
express
______ warranties are explicitly stated.