Deck 18: Sales Warranties

Question 1

If a seller offers a written __________ warranty, the consumer transaction is subject to the Magnuson-Moss Act.

A) unlimited
B) limited
C) express
D) All of the choices are correct.

Answer 1

express

Question 2

What warranty has the seller implicitly promised if the seller states the goods for sale will not later be seized by someone who claims to have a collateral interest in them from an unpaid loan?

A) An implied warranty of title.
B) An express warranty.
C) The Magnuson-Moss warranty.
D) The warranty of fitness for a particular purpose.

Answer 2

An implied warranty of title.

Question 3

What section of the UCC requires merchants to warrant that the goods shall be delivered free of the rightful claim of any third person claiming infringement?

A) An implied warranty of noninfringement.
B) An express warranty.
C) The Magnuson-Moss warranty.
D) The warranty of fitness for a particular purpose.

Answer 3

An implied warranty of noninfringement.

Question 4

Other than the express warranty above, seller makes no other warranties about the performance of the products and disclaims all other warranties, express or implied, relating to the products, including without limitation any warranty of merchantability, fitness for a particular purpose or noninfringement. This is an example of what type of:

A) A warranty
B) A promise
C) A contract
D) Non-disclosure

Question 5

The implied warranty of merchantability applies to every sale from a __________ to a buyer.

A) Merchant seller
B) Non-merchant
C) Layperson
D) Seller

Question 6

In order to __________ a warranty, the seller must do so in a conspicuous writing such as capital letters or bold print.

A) uphold
B) resubmit
C) restructure
D) dislaim

Question 7

Warranties are recognized as __________ enforceable promises under state statutory laws based on Article 2 of the UCC.

A) implied
B) legally
C) secondary
D) None of the choices are correct.

Question 8

When the seller makes a promise regarding the goods or a representation of fact about the goods, this is known as:

A) An implied warranty.
B) An express warranty.
C) The Magnuson-Moss warranty.
D) The warranty of fitness for a particular purpose.

Question 9

If the seller has not made a specific promise or representation about the product, the buyer may still be protected by a UCC-imposed:

A) implied warranty.
B) express warranty.
C) Magnuson-Moss warranty.
D) warranty of fitness for a particular purpose.

Question 10

As a practical matter, seller representations are often made through __________

A) warranties.
B) puffery.
C) assurances.
D) advertising.

Question 11

"This truck gets 22 miles per gallon when driven on the highway." What type of warranty would this be considered?

A) An implied warranty.
B) An express warranty.
C) The Magnuson-Moss warranty.
D) The warranty of fitness for a particular purpose.

Question 12

What section of the UCC requires the seller to guarantee that the goods are free of any security interests or lien?

A) 2-312 implied warranty of title.
B) 2-104 express warranty.
C) 2-314 implied warranty of merchantability The Magnuson-Moss warranty.
D) 2-315 The warranty of fitness for a particular purpose.

Question 13

Although the UCC does not require specific language to disclaim warranties, courts have held that this phrase __________ is sufficient to disclaim the implied warranties of fitness for a particular purpose and noninfringement.

A) as it was
B) so-so
C) as-is
D) None of the choices are correct.

Question 14

The UCC allows a seller to avoid the risks associated with warranties and __________ both implied and express warranties under certain conditions.

A) supersede
B) disclaim
C) nullify
D) None of the choices are correct.

Question 15

The UCC requires that any disclaimer of the warranty of title include language that makes it clear to the buyer that the seller is __________ conveying free and clear title to the goods.

A) only
B) not
C) always
D) All of the choices are correct.

Question 16

Once __________ warranty has been made regarding a promise, or statement of fact regarding the goods, the seller is bound to honor that warranty.

A) an implied warranty
B) an express warranty
C) a quasi-warranty
D) the warranty of fitness for a particular purpose

Question 17

Other than the express warranty above, seller makes no other warranties about the performance of the products and disclaims all other warranties, express or implied, relating to the products, including without limitation any warranty of merchantability, fitness for a particular purpose or noninfringement. This is an example of what type of:

A) A warranty
B) A promise
C) A contract
D) Non-disclosure

Question 18

The UCC allows a seller to disclaim defects by making the goods available to the buyer for __________.

A) improvement
B) inspection
C) fixing
D) sale

Question 19

The law has evolved to protect consumers and largely eliminate the privity of __________ requirement.

A) fact
B) warranty
C) contract
D) All of the choices are correct.

Question 20

Privity of contract dealing with the distribution chain is referred to as __________ privity.

A) vertical
B) horizontal
C) lateral
D) adjacent

Question 21

The UCC deals with __________ privity, or the extension of a warranty to someone other than the buyer.

A) vertical
B) horizontal
C) lateral
D) adjacent

Question 22

__________ privity extends a warranty to anyone in the buyer's household and their guests.

A) unanimous
B) horizontal
C) lateral
D) adjacent

Question 23

A buyer must give notice to the seller of a breach of warranty within a __________ time after the breach is discovered.

A) uniform
B) expressly stated
C) adequate
D) reasonable

Question 24

Joe lives in a state where he can sue the manufacturer of goods he purchased for breach of warranty even though he never contracted with that company. The courts in this state have done away with the requirement of horizontal privity. What is the type of privity in this situation?

A) privity of warranty
B) horizontal privity
C) vertical privity
D) privity of distribution

Question 25

As with other consumer protection statutes, the Magnuson-Moss Act does not apply to purely __________ transactions where both the buyer and seller are regularly engaged in the sale of goods.

A) implied seller
B) merchant
C) non-merchant
D) warranty buyer

Question 26

A __________ is defined as one who purchases or leases a good with the intent of using it for personal reasons rather than for resale or use in a business.

A) guarantor
B) seller
C) consumer
D) None of the choices are correct.

Question 27

The Magnuson-Moss Act did not create any additional __________ warranties upon which consumers can base a lawsuit.

A) implied
B) express
C) joining
D) fitness for a particular purpose.

Question 28

Jim lives in a state where his daughter can sue the retailer of goods Jim purchased for breach of warranty even though she never contracted with that company. The courts in this state have done away with the requirement of horizontal privity. A bottle of shampoo Jim bought recently had been known for turning hair purple. Can Jim's daughter sue the retailer of the shampoo?

Question 29

Answer: Jim lives in a state where his daughter can sue the retailer of goods Jim purchased for breach of warranty even though she never contracted with that company. The courts in this state have done away with the requirement of horizontal privity. A bottle of shampoo Jim bought recently had been known for turning hair purple. Can Jim's daughter sue the retailer of the shampoo?