Business Law Chapter 25
Which of the following are warranties of quality?
Implied warranty of fitness for a particular purpose Implied warranty of trade usage Implied warranty of merchantability
The _______ requires that the seller write up a warranty for any good sold for more than $10.
Magnuson-Moss
Statements of opinion are often salespersons' exaggerations and are known as: _______.
puffing
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?
"The car has 5,000 miles on it."
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?
Express warranty
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?
Implied warranty of merchantability
Which federal law states that if the seller decides to issue a written warranty for a consumer good sold for more than $10, the seller must specify whether the warranty is a full or limited warranty?
Magnuson-Moss Act
Bella attended a sheriff's auction for goods that were seized. If Bella buys something at the auction, will she have warranty of title?
No, because Bella knows that the goods did belong to someone else.
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?
No, because Buyer waived those rights when she refused to inspect the table.
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?
No, because she failed to comply with the applicable statute of limitations.
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?
No, because the UCC implied warranty of merchantability allows for some variations would occur in the normal course of trade.
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?
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.
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?
No, because there was a clear, conspicuous, unambiguous warning about the weight requirements of the chair.
Lydia bought a microwave oven the previous day to help warm up some food she planned to serve at her party that night. One of the party guests, Deb, asked Lydia if it would be okay to warm up her coffee in the microwave. Lydia said yes, but when Deb touched the door of the microwave, she got a very nasty shock. Lydia tried to bring a claim against the seller, but the seller claimed that all warranties had been disclaimed in the operator's manual. Lydia looked for the disclaimer and found it buried in the operator's manual in very small print. The language used many legal terms that were unfamiliar to Lydia or any other member of the public. Will Lydia be able to sustain a claim against the seller?
Yes, because the disclaimer was not in clear, unambiguous, language in conspicuous type.
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: _____.
an express warranty
Under the UCC, goods are merchantable if the goods: _______.
are able to pass without objection in the trade or market for similar goods are produced, within the variations permitted by the agreement, of even kind, quality and quantity within each unit and among all units involved
Under a(n) _______ of a contract, a(n) ______ is impliedly guaranteeing that rights being assigned are valid.
assignor assignment
Under the UCC, a warranty is a(n) _______ by one party that the other party can rely on its representation of _______.
assurance fact
A warranty is an assurance: _______.
by one party that the other party can rely on its representation of fact
A buyer may waive both implied and express warranties by failing to:_______.
comply with the seller's request to inspect the goods examine goods for which an express warranty was created by a sample or model
In order to disclaim a warranty, the seller must: _______.
disclaim it in clear, unambiguous, conspicuous language
Exceptions to title warranties occur if they are: _______.
disclaimed or modified by specific language or if the seller is obviously unable to guarantee title
If the buyer relies on representations, those representations become part of the contract in the form of: _______.
express warranties
Any description of the good's physical nature or its use, either in general or specific circumstances, that becomes part of the contract is known as: _______.
express warranty
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): _______.
full warranty
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): _______.
has good and valid title to the goods
Shawna had borrowed Vivian's Rolex watch which was worth $10,000. While she was wearing the watch, Maria, a friend of Vivian's, came up to Shawna and said she would give her $6,000 for the watch. Maria knew the watch belonged to Vivian. Shawna accepted the money and gave the watch to Maria. When Vivian found out, she claimed the sale must be voided due to a breach in the __________
implied warranties of title
If a lessee informs a lessor that a product is expected to perform a specific task and the product fails to do so, the warranty that is affected is the: _______.
implied warranty of fitness for a particular purpose
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: _______.
implied warranty of merchantability
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): _______.
implied warranty of trade usage
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: _______.
implied warranty of trade usage has been violated
A(n) ______ warranty of quality arises by operation of _______.
law implied
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: _______.
limitations
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): _______.
limited or full warranty
The landmark case defining and illustrating the implied warranty of ______ is Webster v. Blue Ship Tea Room, Inc.
merchantability
in the Classic Case Webster v Blue Ship Tea Room, the issue involved the _______ warranty of ________ of the seafood chowder.
merchantability implied
Under the UCC, the implied warranty of ______ includes the implied warranty of _______.
merchantability quality
Under the UCC, the implied warranties of quality include the implied warranty of:_______.
merchantability trade usage a particular purpose
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: _______.
replacement of the good or defective part or she is entitled to a refund
An implied warranty of fitness for a particular purpose is when a seller or lessor knows or has reason to know: _______.
that the buyer or lessee is relying on him or her to make the selection why the buyer or lessee is purchasing or leasing the goods in question. the seller or lessor does not have to be a merchant
A warranty of title is defined by: _______.
the Uniform Commercial Code
The UCC changed the law of warranties which was originally covered by: _______.
the common law
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: _______.
the implied warranty of fitness for a particular purpose
The UCC recognizes the rights of other parties in addition to the rights of the buyer. This is known as warranty rights of: _______.
third parties
When a party "assigns" a contract to another party, the assignor is impliedly guaranteeing that the rights being assigned are: _______.
valid
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: _______.
warranty rights of third parties
