Deck 25: Warranties

Question 1

Puffing generally creates an express warranty.

Answer 1

False

Question 2

Any description of the good's physical nature or its use, either in general or specific circumstances, that becomes part of the contract is called an express warranty.

Answer 2

True

Question 3

The Magnuson-Moss Act requires a minimum limited warranty on every sale of goods.

Answer 3

False

Question 4

Express warranties may be found in advertisements.

Question 5

Unless the seller proves otherwise, the UCC assumes that the seller has good and valid title to the goods.

Question 6

Which of the following are types of warranties?

A) Express warranties, implied warranties of quality, and acknowledged title warranties
B) Implied warranties of quality and express warranties, but not acknowledged title warranties
C) Acknowledged title warranties, but not express warranties or implied warranties of quality
D) Acknowledged title warranties and express warranties, but not implied warranties of quality
E) Express warranties and implied warranties of quality, but not acknowledged title warranties

Question 7

Express warranties are not material terms of a sale or lease contract.

Question 8

If a buyer fails to comply with the statute of limitations, there is a waiver of warranty rights.

Question 9

According to the rule of privity, warranties may not extend to third parties to a contract.

Question 10

What was the court's ruling on appeal in First State Bank & Trust Company of Shawnee v. Wholesale Enterprises, Inc., the case in the text involving whether the implied warranty of title should be extended to subsequent purchasers?

A) The court ruled that the implied warranty of title did not extend to subsequent purchasers.
B) The court ruled that the implied warranty of title did extend to subsequent purchasers.
C) The court ruled that the implied warranty of title extended only to subsequent purchasers who purchased within 12 months.
D) The court ruled that the implied warranty of title extended only to subsequent purchasers who purchased within 4 years.
E) The court ruled that the implied warranty of title extended only to the first three subsequent purchasers, but no further.

Question 11

A seller may disclaim an implied warranty successfully even if the disclaimer in the contract is confusing.

Question 12

The purchaser or lessee must have purchased or leased the good from a merchant in order to invoke the implied warranty of merchantability.

Question 13

________ are assurances by one party that the other party can rely on its representations of fact.

A) Warranties
B) Contractual promises
C) Statutes of limitations
D) Affirmances
E) Implication promises

Question 14

The UCC does not permit buyers to recover from sellers who have breached warranties of title.

Question 15

Samples or models cannot provide an express warranty because they are not original product.

Question 16

If a seller wants to disclaim an implied warranty of fitness for a particular purpose, the warranty must be disclaimed in writing.

Question 17

Which of the following types of warranties are automatically injected into a contract, as a matter of law?

A) Express warranties, implied warranties of quality, and acknowledged title warranties
B) Implied warranties, but not express warranties or acknowledged title warranties
C) Acknowledged title warranties, but not express warranties or implied warranties of quality
D) Acknowledged title warranties and express warranties, but not implied warranties of quality
E) Express warranties and implied warranties of quality, but not acknowledged title warranties

Question 18

The UCC assumes that the seller has the right to transfer title free and clear of infringements of intellectual property rights of which the buyer does not have knowledge.

Question 19

The UCC is just an adoption of the entirety of the common law of warranties.

Question 20

In the text case, Lucy Mydlach v. DaimlerChrysler Corp, the questions at issue were whether the plaintiff could bring a revocation of acceptance claim against a vehicle manufacturer, and when the statute of limitations began to run under the Magnuson-Moss Act. Which of the following was the result on appeal?

A) The court ruled that a revocation of acceptance claim could be brought against a vehicle manufacturer and that the statute of limitations under the Magnuson-Moss Act began to run when the vehicle was sold.
B) The court ruled that a revocation of acceptance claim could be brought against a vehicle manufacturer and that the statute of limitations under the Magnuson-Moss Act began to run when repairs under warranty were not properly made.
C) The court ruled that a revocation of acceptance claim could not be brought against a vehicle manufacturer and that the statute of limitations under the Magnuson-Moss Act began to run when the vehicle was sold.
D) The court ruled that a revocation of acceptance claim could not be brought against a vehicle manufacturer and that the statute of limitations under the Magnuson-Moss Act began to run when repairs under warranty were not properly made.
E) The court ruled that a revocation of acceptance claim could not be brought against a vehicle manufacturer and that the statute of limitations under the Magnuson-Moss Act began to run when the manufacturer was notified that a problem with the vehicle existed.

Question 21

A salesperson gives a veterinarian a sample of dog shampoo that is designed to keep dogs from shedding their hair even after one use. When the veterinarian uses the shampoo, the dogs he uses the shampoo on continue to shed. Did the sample create any warranty?

A) No, because the sample was just an example of puffing.
B) No, because the sample did not claim to make representations.
C) No, because express warranties must be written and not oral.
D) No, but the sample created an implied warranty.
E) Yes, a sample or model may provide an express warranty.

Question 22

A salesperson selling a knife tells the potential buyer: "This knife can cut through a phone book. Guaranteed!". Does this statement create a warranty?

A) No, because it is puffing.
B) No, because it is just a salesperson's statement.
C) No, because it is not in writing.
D) Yes, an express warranty.
E) Yes, an implied warranty.

Question 23

What is one of the two ways an express warranty can be viewed?

A) Warranties which give the buyer a longer time to bring suit.
B) Warranties which are enforceable because they come from written guarantees.
C) Warranties which provide a very short time for a buyer to bring a cause of action.
D) Warranties which protect sellers by limiting situations in which buyers can bring suit.
E) Warranties which arise out of the UCC, rather than the common law.

Question 24

Warranties of assignability under common law are the only warranties that are ________.

A) availability warranties.
B) for particular purposes.
C) implied warranties.
D) considered good title.
E) only allowed for goods over $10,000.

Question 25

In general, what happens if a buyer relies on misrepresentations?

A) They become part of the contract as express warranties.
B) They become part of the contract as implied warranties.
C) They do not become part of the contract unless the buyer can prove an intentional lie.
D) They do not become part of the contract because the buyer is supposed to do due diligence.
E) They do not become part of the contract unless they were in writing.

Question 26

To use common law language, a[n] ________ is a material term of the sale or lease contract.

A) express warranty
B) implied warranty
C) acknowledged warranty
D) claimed warranty
E) consequential warranty

Question 27

Gianna buys a toaster that shocks her when she plugs it into an outlet. She returns it to the store and is told that the seller does not provide warranties and that she would have to return it to the overseas manufacturer. The postage to return it to the manufacturer would amount to more than the toaster is worth. Gianna believes that is ridiculous. Who is correct under the UCC and why?

A) Gianna is correct because by selling the toaster, the seller made an implied warranty of merchantability.
B) Gianna is correct because by selling the toaster, the seller made an express warranty.
C) Gianna is correct because by selling the toaster, the seller made an implied warranty of fitness for a particular purpose.
D) The seller is correct because only the manufacturer is responsible for warranties on consumer goods.
E) The seller is correct because while the seller is responsible for warranties for consumer goods costing in excess of $500, only the manufacturer is responsible for lower-priced consumer goods.

Question 28

Which of the following best expresses the court's ruling in the case nugget Jackson v. Bumble Bee Seafoods, Inc., in which the plaintiff sued after small fish bones were found in canned tuna fish eaten by the plaintiff?

A) That the plaintiff could not recover because the bone was not a foreign substance to the fish and should have been expected.
B) That the plaintiff could recover based upon the implied warranty of fitness for a particular purpose.
C) That the plaintiff could recover based on an express warranty.
D) That the plaintiff could recover based upon the implied warranty of merchantability because even though bones are not a foreign substance in fish, they are not expected in small pieces of tuna fish.
E) That the plaintiff could not recover because no food has warranties attached to it.

Question 29

What was the result in the "Case Opener" in which a purchaser of a puppy from a person who regularly sold puppies sued the seller for veterinarian bills after the puppy was found to be in poor health?

A) The court found that the puppy was not a good covered under the UCC, and the plaintiff was denied recovery.
B) The court refused any recovery to the plaintiff on the basis that the seller was not considered a merchant under the UCC and that no implied warranties were made.
C) The buyer in essence had no remedy because the court ruled that the plaintiff's only remedy, which the plaintiff was unwilling to do, was return of the puppy for a refund.
D) The court allowed the buyer to recover the contract price only, not veterinarian bills.
E) The court awarded the plaintiff the veterinary bills finding that the UCC applied and that the seller breached the warranty of merchantability.

Question 30

Which of the following is NOT a requirement in order for goods to be merchantable?

A) That goods must pass without objection in the trade or market for similar goods.
B) That goods must be fit for the ordinary purposes for which such goods are used.
C) That goods must be adequately contained, packaged, and labeled as the agreement may require.
D) That goods must conform to the promises or affirmations made on the container or label, if any.
E) That goods must be sold without variation.

Question 31

Western law's "warranty" is referred to as a pledge in the country of ________.

A) Canada
B) Kazakhstan
C) Japan
D) China
E) Norway

Question 32

An express warranty is ________ that becomes part of the contract.

A) any description of the good's physical nature or its use
B) a partial description of the good's physical nature but not it's use
C) any use of the goods but does not describe its physical nature
D) the physical description of the warranty and the particular packaging required of the goods
E) a consequential warranty

Question 33

What is the warranty of assignability at common law?

A) That when a party "assigns" a contract to another party, the assignor is impliedly providing a warranty of merchantability.
B) That when a party "assigns" a contract to another party, the assignor is impliedly guaranteeing a warranty of fitness for a particular purpose.
C) That when a party "assigns" a contract to another party, the assignor is impliedly guaranteeing that the rights being assigned are valid.
D) That when a party "assigns" a contract to another party, the assignor is expressly guaranteeing a warranty of merchantability for fitness.
E) That when a party "assigns" a contract to another party, the person being assigned contractual rights expressly agrees to provide consideration.

Question 34

Felipe purchases several new sets of speakers for his new limousines for his car service business from Nellie's SpeakerSeries. In order for the implied warranty of merchantability to be applied to these speaker sets, which of the following is required?

A) Both parties must be merchants and a sale, not a lease, must be involved.
B) Both parties must be merchants, and either a sale or lease must be involved.
C) The seller must be a merchant and a sale, not a lease, must be involved.
D) The seller must be a merchant, and either a sale or lease must be involved.
E) The seller must be a merchant, goods valued at over $500 must be involved, and either a sale or lease must be involved.

Question 35

Which of the following is false regarding express warranties?

A) They may be part of a brochure.
B) They may not arise from a salesperson's oral promise.
C) A sample may provide an express warranty.
D) They may be part of a written sales or lease contract.
E) A model may provide an express warranty.

Question 36

Which statement is true regarding the implied warranty of fitness for a particular purpose?

A) It applies in every case in which an express warranty is found.
B) It applies in every case in which an implied warranty of merchantability is found.
C) It is a common law doctrine not followed by the UCC which recognizes only the implied warranty of merchantability.
D) It applies in every sales transaction involving a merchant.
E) It may be applied to sellers who are not merchants.

Question 37

An advertisement in a car magazine states that "this motor oil will keep your engine cleaner than any other motor oil on the market. We guarantee this or your money back." This statement is an example of:

A) an implied warranty
B) an express warranty
C) a claimed warranty
D) puffing
E) a consequential warranty

Question 38

What was the result in the case of Webster v. Blue Ship Tea Room, Inc., the case in which the plaintiff sued after getting a bone caught in her throat while eating fish chowder?

A) That the plaintiff could recover based upon the implied warranty of merchantability.
B) That the plaintiff could recover based upon the implied warranty of fitness for a particular purpose.
C) That the plaintiff could recover based on an express warranty.
D) That the plaintiff could recover based on either breach of an express warranty or breach of the implied warranty of merchantability.
E) That the plaintiff could not recover because the bone was not a foreign substance to the fish and should have been expected.

Question 39

Joseph decides he no longer needs his matching couch and loveseat that both have pull-out beds in them. Joseph's next door neighbor buys Joseph's furniture for $1,500. Does an implied warranty of merchantability apply in this case?

A) Yes, because the couch and loveseat are consumer goods.
B) Yes, because the couch and loveseat were valued over $500.
C) No, because Joseph is not a merchant buying goods in the ordinary course of business.
D) No, because the purchaser must have purchased or leased the goods from a merchant.
E) Not unless formal title to the couch and loveseat was transferred to Joseph.

Question 40

Joann makes doll clothing and Jesse makes custom glue in his basement. Joann wants to buy some of Jesse's glue. Joann visits Jesse and says she needs a glue that will work on fabric. Jesse sells her a tube of Super Special Glue, but it does not work on fabric at all. Does Joann have a warranty claim?

A) Yes, an implied warranty of fitness for a particular purpose.
B) Yes, an express warranty.
C) No, because Jesse is not a merchant.
D) No, because Jesse couldn't possibly know if the glue would work on fabric.
E) It depends upon whether the glue works on any other materials or not.

Question 41

In ________, in business contracts involving the sale of goods, time of payment and delivery are considered warranties unless otherwise specified.

A) Jamaica
B) South Korea
C) Japan
D) Hong Kong
E) Thailand

Question 42

Business law teacher Julie was very sensitive about her upcoming 50th birthday. Her students decided to surprise her with a cake. On behalf of her class, Damon, a student, went to the bakery and ordered a cake that said "Happy Birthday - You Look Great!" The salesclerk said there would be no problem having the cake ready and that it should make the birthday girl feel great. Damon was in a big hurry when he picked up the boxed cake, and although the salesclerk asked Damon to take a look at the cake, he declined. Unfortunately, when the cake was opened in class, the icing read, "Happy Birthday - You Look Gray!" The students were mortified, and Julie stormed off angrily, vowing to give a difficult final. Which of the following is true regarding the warranties the bakery breached, if any?

A) Because the salesclerk promised that there would be no problem with the cake, the bakery breached an express warranty and is liable for damages.
B) The bakery breached the warranty of merchantability and is liable for damages.
C) Because the salesclerk promised that the cake would make the birthday girl feel great, the bakery breached the implied warranty of fitness for a particular purpose and is liable for damages.
D) Because food was involved, no warranties were made.
E) Because Damon failed to inspect the cake, he waived implied and express warranties.

Question 43

Craig went into a hardware store to purchase a saw. He informed the salesclerk that he wanted a saw that would cut through copper tubing. The salesclerk referred Craig to a display of saws on the wall, and Craig purchased one. What kind of warranty, if any, did the salesclerk make?

A) The salesclerk made an express warranty, a warranty of trade usage, and a warranty of fitness for a particular purpose.
B) The salesclerk made a warranty of fitness for a particular purpose, but not an express warranty or a warranty of trade usage.
C) The salesclerk made an express warranty and a warranty of trade usage, but not a warranty of fitness for a particular purpose.
D) The salesclerk made an express warranty, but not a warranty of fitness for a particular purpose or a warranty of trade usage.
E) The salesclerk made a warranty of trade usage, but not a warranty of fitness for a particular purpose or an express warranty.

Question 44

Perry and Tim negotiate a contract governed by the UCC. Tim wants to extend the time to make a warranty claim, so Perry and Tim agree that Tim could sue for breach any time within eight years. Tim sues for breach after six years. Can Tim make a claim?

A) Yes, because there is a 10 year statute of limitations under the UCC.
B) Yes, because the parties are free to negotiate any statute of limitations they want.
C) No, because parties to a contract are never allowed to negotiate on the statute of limitations.
D) No, because the UCC requires a lawsuit to be brought within four years and parties to a contract are not free to negotiate a longer time period than the UCC's four year limit.
E) It depends upon the contract terms.

Question 45

A breach of ________ occurs if it is generally accepted in the trade that a certain product is always preassembled and the seller does not deliver the goods in that condition.

A) the implied warranty of merchantability
B) the implied warranty of fitness for a particular purpose
C) the implied warranty of trade usage
D) an express warranty
E) an express warranty of quality

Question 46

If a buyer fails to comply with the ________, it operates as a waiver of warranty rights under the contract.

A) waiver of purchase
B) statute of limitations
C) parol evidence rule
D) damage clause
E) owner's manual

Question 47

Anthony went into a hardware store to purchase a saw. The salesclerk said of a particular saw, "This saw will cut through metal." Anthony purchased the saw. What kind of warranty, if any, did the salesclerk make through the statement?

A) The salesclerk made an express warranty, a warranty of trade usage, and a warranty of fitness for a particular purpose.
B) The salesclerk made a warranty of fitness for a particular purpose, but not an express warranty or a warranty of trade usage.
C) The salesclerk made an express warranty and a warranty of trade usage, but not a warranty of fitness for a particular purpose.
D) The salesclerk made an express warranty, but not a warranty of fitness for a particular purpose or a warranty of trade usage.
E) The salesclerk made a warranty of trade usage, but not a warranty of fitness for a particular purpose or an express warranty.

Question 48

Which position have most states adopted in regard to warranty rights of third parties?

A) Seller's warranties extend to the buyer's household members and guests.
B) Seller's warranties extend to any reasonable and foreseeable user.
C) Seller's warranties extend to anyone injured by the good.
D) Seller's warranties extend to the buyer only.
E) Seller's warranties extend to the buyer and the buyer's family only.

Question 49

________ are simply exaggerations made by a salesperson and do not create a warranty.

A) Puffing
B) Falsehoods
C) Innocent misrepresentations
D) Fraudulent misrepresentations
E) Negligent misrepresentations

Question 50

How may a buyer waive implied and express warranties?

A) A buyer may waive both implied and express warranties through (1) failing to examine goods for which an express warranty was created by a sample or model or (2) failing to comply with the seller's request to inspect the goods.
B) A buyer may waive an implied warranty by failing to comply with the seller's request to inspect the goods, but an express warranty may only be waived by failing to examine goods for which an express warranty was created by a sample or model.
C) A buyer may waive an express warranty by failing to comply with the seller's request to inspect the goods, but an implied warranty may only be waived by failing to examine goods for which an express warranty was created by a sample or model.
D) A buyer may waive both implied and express warranties only through signing a statement that such warranties are waived.
E) A buyer may waive implied warranties only through signing a statement that such warranties are waived, but a buyer may waive express warranties through (1) failing to examine goods for which an express warranty was created by a sample or model or (2) failing to comply with the seller's request to inspect the goods.

Question 51

Which of the following is true about the UCC's rule on implied warranties of title?

A) The UCC assumes that the seller does not have good and valid title and requires proof of title under all circumstances.
B) The UCC prohibits buyers from recovering from sellers who have breached warranties of title.
C) There are no exceptions to title warranties under the UCC.
D) The UCC assumes sellers do not have the right to transfer title free and clear, until proved otherwise by a court.
E) The UCC assumes the seller has good and valid title to goods and the right to transfer title free and clear.

Question 52

Perry and Tim negotiate a contract governed by the UCC. Perry is worried about being sued, so Perry and Tim negotiate an agreement wherein each will only have 16 months to pursue a claim for breach. Tim, claiming the UCC gives him four years to sue, files a claim after three years. Can Tim go forward with his claim?

A) Yes, because the UCC does allow him four years and parties cannot change that.
B) Yes, because the UCC allows him four years and parties can only extend the UCC statute of limitations, not shorten it.
C) No, because buyers and sellers are free to negotiate contractually a shorter time period than the UCC's four year statute of limitations.
D) No, because parties to a contract are never allowed to negotiate on the statute of limitations.
E) It depends upon the contract terms.

Question 53

Carlyn is selling a very expensive dress and tells Marion who tries it on "That dress is so gorgeous on you, all the men will be flocking to your side." Does this statement by Carlyn create an express warranty?

A) No, because oral statements by sales people never create warranties.
B) No, because it is impossible to objectively measure what is gorgeous in a dress.
C) No, because this statement is an example of puffing.
D) Yes, if Carlyn made the statement in an attempt to make the sale.
E) Yes, under all circumstances sales people are responsible for their words.

Question 54

A buyer, under the UCC, must bring a lawsuit on a breached contract within ________ of when the breach occurred or when the buyer became aware of it.

A) one month
B) three months
C) two years
D) four years
E) no specified time is required

Question 55

Tanya lives with her sister Jane and decides to help out around the house and mows the yard with the lawn mower that Jane recently purchased. While mowing the yard, the mower malfunctions and Tanya is seriously hurt. Does Tanya have a warranty claim under the UCC?

A) It depends on the state.
B) Yes, because warranties extend to the buyer's household members and guests.
C) No, only Jane has any rights since she was the buyer of the lawn mower.
D) It depends upon what is written in the lawn mower's instruction manual.
E) Seller's warranties extend to the buyer and the buyer's spouse and children only.

Question 56

Which is a true statement regarding a buyer's right to waive warranties?

A) A buyer may not waive warranties.
B) A buyer may waive implied warranties but not express warranties.
C) A buyer may waive express warranties but not implied warranties.
D) A buyer may waive both express warranties and implied warranties.
E) A buyer may waive express warranties and the implied warranty of fitness for a particular purpose, but not the implied warranty of merchantability.

Question 57

Which of the following was the result in Melissa Kahn v. Volkswagen of America, Inc., the case in the text in which the plaintiff attempted to hold the manufacturer liable for problems with a vehicle she leased from a dealership?

A) The court ruled that the plaintiff could recover from the manufacturer based upon the implied warranty of merchantability.
B) The court ruled that the plaintiff could recover from the manufacturer based upon the implied warranty of fitness for a particular purpose.
C) The court ruled that the plaintiff could recover from the manufacturer based upon the theory of express warranty.
D) The court ruled that the plaintiff could recover from the manufacturer based upon the implied warranty of trade usage.
E) The court ruled that the plaintiff could not recover from the manufacturer.

Question 58

Which of the following is true regarding disclaimers of the implied warranty of merchantability?

A) Any attempt to disclaim the implied warranty of merchantability is per se unconscionable, but a court will enforce the disclaimer if the buyer is another merchant and is fully informed of the disclaimer.
B) Any attempt to disclaim the implied warranty of merchantability is per se unconscionable, and a court will refuse to enforce the disclaimer.
C) Under some situations, a disclaimer of the implied warranty of merchantability may be made within 10 days after a sale.
D) A disclaimer of the implied warranty of merchantability may be done orally.
E) By federal law, there is no requirement that the term "merchantability" be used in any disclaimer.

Question 59

A buyer purchases a car at a sheriff's sale of seized goods. Later, the buyer discovers that there is a lien on the car. Can the buyer recover from the seller for breaching the warranty of title?

A) Yes, because the UCC assumes that the seller has good and valid title to goods.
B) Yes, because the UCC assumes that the seller has the right to transfer title free and clear.
C) Yes, because the UCC specifically permits buyers to recover from sellers who have breached warranties of title.
D) Yes, because there are no exceptions to title warranties.
E) No, because this is an exception to the warranty of title because the seller was obviously unable to guarantee title.

Question 60

Greenwald's PopWorld purchases 2,000 bottles of GreenSlime soda pop from Green Mountain Pop Distribution Company. It is customary in the soda pop industry that soda pop comes in cartons of 8 soda pops per carton. Green Mountain delivers the bottles on crates wrapped up but not in cartons. Was any warranty breached?

A) No, there was no indication that the buyer wanted the product in cartons.
B) No, there is no such implied warranty of fitness for a particular purpose.
C) Yes, the implied warranty of trade usage.
D) Yes, the express warranty of soda cartons for quality and delivery.
E) Yes, the implied warranty of quality.

Question 61

Based on Jared's statement that the store carried the best computers in the state, and perhaps even in the country, which of the following would be the result in Carmen's suit?

A) She would win so long as the store cannot prove that Carmen knew Jared was just giving his opinion.
B) She would win so long as she can prove that she did not know that Jared was only giving his opinion.
C) She may rely on the statement and win because it was made by Jared in his capacity as a manager, not by an uninformed sales clerk.
D) She would lose because Jared was only expressing his opinion.
E) She would lose because a consumer good was involved.

Question 62

Is the manager correct that the store never offers express or implied warranties on products?

A) Yes, because unless Carmen had a written promise specifically providing for a warranty, the computer was sold without a warranty.
B) Yes, because unless Carmen had an oral promise specifically promising a warranty or a written contract specifically providing for a warranty, the computer was sold without a warranty.
C) No, because the computer was sold with a warranty of merchantability.
D) No, because the computer was sold with a warranty of merchantability and also with a warranty of fitness for a particular purpose.
E) No, because the computer was sold with a warranty of merchantability, with a warranty of fitness for a particular purpose, and also with an express warranty.

Question 63

Theilan and Wayland are merchants negotiating contract terms under a contract that will be governed by the UCC. What is the shortest possible statute of limitations for bringing a lawsuit based on breach of contract?

A) 10 days.
B) One month.
C) 18 months.
D) Three years.
E) Four years.

Question 64

[Defective Computer] Carmen went to buy a new computer from ABC Computer Sales. The manager, Jared, told her that ABC carried the best computers in the state and perhaps even in the country. Unfortunately, after Carmen bought the computer and took it home, she discovered that it had a number of problems. When she took it back to the store, Jared told her that he was sorry, he was simply giving his opinion when he sold her the computer, and that the store never offers any kind of express or implied warranty on products. Jared told her that is why he never mentioned warranties - because they were not provided.
Jared's defense would be that he was only giving his opinion when he said the store carried the best computers in the state, even in the country. That is known as ________.

A) Express warranty
B) Implied warranty
C) Warranty of fitness for a particular purpose
D) Acknowledged warranty
E) Puffing

Question 65

Troy and Elizabeth are arguing over the rights of sellers and their warranties. Elizabeth tells Troy that the primary codification of both state and federal laws regarding sellers' warranties is found in the UCC. Is she correct?

A) Yes, seller warranties are found in the UCC.
B) No, seller warranties are found in the Restatement of Contracts.
C) No, seller warranties are found in the Magnuson-Moss Act.
D) No, seller warranties are found in the Consumer Warranty and Protection Act.
E) No, seller warranties are found in the Consumer Rights Protection Act of 1976.

Question 66

If a written warranty is silent as to whether or not it is a full warranty, the Magnuson-Moss Act requires what presumption?

A) The warranty is presumed to be a limited warranty.
B) The warranty is presumed to be an express, limited warranty.
C) The warranty is presumed to be a limited warranty of merchantability.
D) The warranty is presumed to be a limited usage of trade warranty.
E) The warranty is presumed to be a full warranty.

Question 67

[Boat Tow] Ryan went to a new car dealership and told the salesperson, Kristin, who was not the manager, that he needed a new car with good gas mileage and that could pull his big boat. Kristin encouraged him to buy a smaller car that she promised could pull the boat. Kristin was new to the job and did not realize that the small car did not have sufficient power to pull the boat for any distance. Ryan bought the car and used it to pull the boat. Unfortunately, the heavy pull on the car did significant damage to the car's engine. Ryan complained to Kristin who denied any liability. Ryan, who had half a semester of business law, informed Kristin that along with the sale of the car he also received an express warranty, an implied warranty of merchantability, and an implied warranty of fitness for a particular purpose; and that he could recover under any of those theories. Kristin truthfully said that no explicit promises regarding warranties were ever made orally or in writing.
Is Ryan correct that the car was sold with an implied warranty of merchantability?

A) No, because there was no writing guaranteeing the warranty signed by the salesperson.
B) No, because Kristin was only engaged in puffing.
C) No, because only the manager can make such a warranty.
D) Yes, but only because Kristin verbally made certain promises.
E) Yes, because there was a reasonable expectation of how the vehicle would perform.

Question 68

Which of the following is a true statement regarding whether the buyer and seller may negotiate a longer time for the statute of limitations than that allowed by the UCC?

A) The buyer and seller may not negotiate a longer time for the statute of limitations than that allowed by the UCC.
B) The buyer and seller may negotiate a longer time for the statute of limitations than that allowed by the UCC without any limits.
C) The buyer and seller may negotiate a longer time for the statute of limitations than that allowed by the UCC so long as the time period in which to sue does not extend past one year from the date of breach.
D) The buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC so long as the time period in which to sue does not extend beyond five years from the date of breach.
E) The buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC so long as the time period in which to sue does not extend beyond six years from the date of breach.

Question 69

[Hot Toaster] Cara bought a toaster from Super Store and brought it home. A friend of hers, Kumar, was at her house making toast. The toaster malfunctioned and shocked Kumar, resulting in a small burn to his hand that required medical attention. Cara also purchased a blender at her friend Nicole's garage sale, with the intention of making smoothies. Unfortunately, the blender was not powerful enough to make smoothies. Assume that not all blenders are designed to provide the texture required for good smoothies.
Based only on the facts presented, what type of warranty did Super Store give Cara upon the sale?

A) An express warranty
B) An implied warranty of merchantability
C) An implied warranty of fitness for a particular purpose
D) An acknowledged warranty
E) A warranty of trade usage

Question 70

Lexi purchased a new printer for her business from XYZ Company. Three years to the day after she purchased the printer, she started noticing problems with it. She negotiated with XYZ Company, but was unable to get a resolution of her problems. She sued XYZ Company four years and one day after she bought the printer. XYZ Company defended on the basis that it was only the seller, not the manufacturer, and also on the basis of the statute of limitations. Assuming the printer is defective and the court follows the reasoning of the case in the text Melissa Kahn v. Volkswagen of America, Inc., which of the following is a true statement regarding the positions of the parties?

A) XYZ Company will win because although Lexi sued within the statute of limitations, in such situations Lexi must sue the manufacturer.
B) XYZ Company will win because although Lexi correctly sued the seller, Lexi filed suit outside the four year statute of limitations.
C) XYZ Company will win because in such situations Lexi must sue the manufacturer and also because Lexi filed suit outside the four year statute of limitations.
D) Lexi will be allowed to proceed because she can hold XYZ Company responsible and because the statute of limitations was tolled during negotiations, she sued on a timely basis.
E) Lexi will win because she can hold XYZ Company responsible and because there is no statute of limitations for business goods of this type.

Question 71

Which of the following is true regarding whether a seller must provide a warranty under the Magnuson-Moss Act?

A) A seller must provide an express, full warranty.
B) A seller must provide an implied, full warranty.
C) A seller must provide at least an express, limited warranty.
D) A seller must provide at least an implied, limited warranty.
E) The act does not require that the seller provide any warranties.

Question 72

When was the Magnuson-Moss Act passed?

A) 1950
B) 1955
C) 1970
D) 1975
E) 2000

Question 73

Assuming adoption of the UCC, which of the following is true regarding whether the buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC?

A) The buyer and seller may not negotiate a shorter time for the statute of limitations than that allowed by the UCC.
B) The buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC without any limits.
C) The buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC so long as the time period is not less than one year.
D) The buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC so long as the time period is not less than six months.
E) The buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC so long as the time period is not less than two years.

Question 74

According to the Magnuson-Moss Act, when the seller issues a written warranty for a consumer good, which of the following is required?

A) The seller must indicate whether that warranty is a full warranty or a limited warranty.
B) The seller must provide a full warranty and must indicate as such.
C) The seller must provide a warranty of merchantability, but no other warranties, and must indicate as such.
D) The seller must provide an implied warranty of trade usage, but no other warranties, and must indicate as such.
E) The seller must provide an implied warranty of trade usage and an implied warranty of merchantability, but not other warranties, and must indicate as such.

Question 75

Is it likely that Ryan will be able to recover damages based upon a breach of the implied warranty of merchantability?

A) No, because the implied warranty of merchantability was that the car would, for example, be fit for the ordinary purposes for which such goods are used. Pulling the boat was not an ordinary purpose for that small car.
B) Yes, because Ryan informed Kristin about the need for the car to pull the boat.
C) Yes, because Kristin told Ryan that the car would pull the boat.
D) No, because of the lack of an implied warranty of fitness for a particular purpose.
E) No, because there was no warranty of merchantability.

Question 76

Any consumer good that is sold for more than $10 is subject to ________.

A) federal contract laws
B) the UCC
C) the Magnuson-Moss Act
D) the Thurman-Princeton Act
E) state specific contract laws

Question 77

Yolanda ordered new business cards from her local printer. She sent a proof of the business card to the printer who made a mock-up of the card and sent an email back to Yolanda asking her to inspect the proof as the final product. Yolanda simply said "Looks good" when she replied to the email. She in fact did not even look at the business cards. When Yolanda received the business cards, she noticed her name was misspelled and said "Yolinda" instead of "Yolanda." Does she have any rights against the printer?

A) Yes, the UCC gives her many remedies to rectify the problem.
B) No, Yolanda waived her warranty by failing to examine the goods as requested by the printer.
C) Yes, all buyers are protected by warranties.
D) No, Yolanda will have to seek remedies under the common law which will not allow recovery in this situation.
E) Yes, under the Consumer Rights Protection Act.

Question 78

Under the Magnuson-Moss Act, what is the effect of a full warranty?

A) It means that if the good fails or is defective, the good or its defective part will be replaced; and if replacement cannot be timely effected, the buyer has the right to a refund or a full replacement.
B) It means only that the good or its defective part will be repaired. The buyer has no other remedy.
C) It means that the good or its defective part will be repaired or replaced if it cannot be repaired. The buyer has no other remedy.
D) It means that the buyer must be immediately refunded the full purchase price.
E) It means that the buyer has the option of an immediate refund of the full purchase price or repair of the good.

Question 79

Is Ryan correct that the car was sold with an implied warranty of fitness for a particular purpose?

A) Yes, because it was promised that the car would pull the boat.
B) No, because Kristin was only engaged in puffing.
C) No, because only the manager can make such a warranty.
D) No, because Kristin made only a warranty of merchantability, not a warranty of fitness for a particular purpose.
E) No, because no implications were made.

Question 80

Which of the following is NOT true for all goods sold for more than $15?

A) A written express warranty is always required.
B) A written warranty, if it exists, must disclose certain information.
C) A written warranty, if it exists, must disclose the names and addresses of the warrantors.
D) A written warranty, if it exists, must disclose any limitations on the warranty.
E) A written warranty, if it exists, must explain the procedures necessary to activate the warranty remedy.