Deck 18: Warranties

Question 1

Both warranties and product liability claims are covered by the law of sales,contract law,and the Uniform Commercial Code.

Answer 1

False

Question 2

The various provisions of law of sales,contract law,the Uniform Commercial Code,and tort law provide remedies to buyers and users of goods and services,and to third parties,who suffer:

A) physical injuries or financial losses.
B) psychological trauma.
C) loss of consortium.
D) a job loss.

Answer 2

A

Question 3

In addition to federal law,consumers are also protected by lemon laws enacted by the individual states.

Answer 3

True

Question 4

Implied warranty of fitness for a particular purpose is sometimes referred to as fitness of purpose.

Question 5

A(n)____________warranty is a guarantee suggested or inferred from known facts and circumstances.

A) executed
B) expressed
C) implied
D) contingent

Question 6

At times,a manufacturer or seller issues statements limiting a warranty to provide less protection than the law requires.Such statements do not have the force of law,and the manufacturer or seller is still responsible for breach of:

A) good faith.
B) guarantee.
C) indemnity.
D) warranty.

Question 7

The Magnuson-Moss Warranty Act requires that a written warranty be labeled either "short" or "unlimited."

Question 8

A kind of guarantee or promise made by a manufacturer or seller that the goods and services offered are really what they are claimed to be,or that the goods or services are what a reasonable person has a right to expect,is known as a(n):

A) patronage.
B) custom.
C) warranty.
D) guarantee.

Question 9

Product liability,covered by tort law,provides consumers and users with remedies when they are injured or suffer property damage as a result of:

A) defective services.
B) defective goods.
C) defective laws.
D) excess tax imposition.

Question 10

Sales talk,or puffing,has the effect of a warranty.

Question 11

The Uniform Commercial Code states that the seller must use formal words such as "warrant" or "guarantee" in order to create an express warranty.

Question 12

A seller or manufacturer has significant legal responsibility only to buyers and users of goods and services,but not to the third parties.

Question 13

Implied warranties can relate to either the title or the quality of goods.

Question 14

Express warranties can be made in many ways,both orally and in writing,including by promise,description,sample,or model.

Question 15

The law dealing with warranties is intended to protect the general public,but it has also limited the seller's obligations and responsibilities.

Question 16

If a written warranty is vague and indefinite,the court may apply the custom of the marketplace or what such a warranty usually means in similar transactions.

Question 17

In an effort to limit the effect of express warranties,some sellers put specific limitations in the warranty.

Question 18

,a merchant is anyone who deals in goods of the kind being sold in the ordinary course of business,or who presents himself or herself as having the skills or knowledge relating to the goods.

Question 19

A buyer cannot refuse delivery of goods even if the goods are not the same as described by the seller or do not conform to the sample or model used by the seller to effect the sale.

Question 20

An implied warranty of fitness does not exist if the buyer does not expressly inform the seller of his or her intended use of the merchandise.

Question 21

An express warranty that is made by the seller to the buyer and becomes part of the basis of the agreement creates a(n)_________that the goods will be as promised.

A) explicit warranty
B) implicit warranty
C) contingent contract
D) specialty contract

Question 22

The Uniform Commercial Code provides specific rules that must be followed by a seller who wants to avoid the responsibility of:

A) full warranties.
B) limited warranties.
C) implied warranties.
D) expressed warranties.

Question 23

The statutes that provide remedies to consumers for products such as automobiles that repeatedly fail to meet certain standards of quality and performance are known as:

A) blue laws.
B) lemon laws.
C) elder laws.
D) red laws.

Question 24

If a seller,at the time of making a contract,knows or has reason to know any particular purpose for which the goods are required and that the buyer is relying on the seller's skill or judgment in selecting or furnishing suitable goods,there is an implied warranty of:

A) good faith.
B) reputation.
C) merchantability.
D) fitness of purpose.

Question 25

The Magnuson-Moss Warranty Act relating to warranties addresses many different kinds of abuses to:

A) sellers.
B) agents.
C) manufacturers.
D) consumers.

Question 26

A promise that a defective product will be repaired without charge within a reasonable time after a complaint has been made is a:

A) full warranty.
B) limited warranty.
C) wagering agreement.
D) conversion.

Question 27

Some sellers put specific limitations in the warranty to limit the effectiveness of a warranty.Such a denial or repudiation in an express warranty is known as:

A) puffing.
B) product liability.
C) a warranty.
D) a disclaimer.

Question 28

Lemon laws vary greatly from state to state,and may not necessarily cover:

A) leased products.
B) services.
C) barter system.
D) exchange of goods.

Question 29

Disclaimers of the warranty of fitness for a particular purpose must be:

A) oral and not be conspicuous.
B) in writing and must be conspicuous.
C) notarized and available electronically.
D) unstamped however displayed.

Question 30

A promise that a buyer might reasonably expect a seller to live up to is a(n):

A) implied warranty.
B) express warranty.
C) limited warranty.
D) full warranty.

Question 31

The Uniform Commercial Code states that any sample or model that is made part of the basis of the bargain creates an express warranty that the whole of the goods will conform to the:

A) requisites of UN standards.
B) similar goods available in the market.
C) sample or model as shown earlier.
D) similar products other than the sample.

Question 32

A rule that would prevent a court from considering oral statements that were inconsistent with the written document is known as a:

A) parol evidence rule.
B) rule of natural justice.
C) rule of alibi.
D) generis rule.

Question 33

A disclaimer of the _____________ of merchantability must mention the word merchantability.

A) warranty
B) guarantee
C) merchandise
D) lemon law

Question 34

The Uniform Commercial Code provides that when a merchant sells goods,he or she warrants that the goods will comply with the following requirements,EXCEPT:

A) to pass without objection in the trade under the contract description.
B) being unfit for the ordinary purposes for which such goods are sold.
C) conforming with the promises or statements of fact made on the container or label.
D) be adequately contained, packaged, and labeled as the agreement may require.

Question 35

A definite promise by the seller that the goods will have certain characteristics is a(n):

A) implied warranty.
B) express warranty.
C) limited warranty.
D) surety bond.

Question 36

The Uniform Commercial Code,_________,states that "any description of goods which is made part of the basis of the bargain creates an express warranty that the goods shall conform to the description."

A) 2-312(1)(b)
B) 2-313(1)(b)
C) 2-314(1)(b)
D) 2-315(1)(b)

Question 37

Implied warranties can relate to either:

A) the actual or sample goods.
B) oral or written promises.
C) the guarantee or warranty of goods.
D) the title or the quality of goods.

Question 38

The warranty that goods sold by a merchant seller must be fit to be sold or resold is an example of an implied warranty of:

A) good faith.
B) reputation.
C) merchantability.
D) loyalty.

Question 39

In an effort to reduce the uneasiness of buyers,sellers often send out mailings to assure buyers that the buyers did indeed make a wise purchase.These statements,subsequent to the sale,also can be regarded as:

A) implied warranties.
B) wagering agreements.
C) express warranties.
D) indemnity.

Question 40

The Magnuson-Moss Warranty Act applies only when written warranties are made voluntarily on consumer products that cost more than:

A) $10.
B) $15.
C) $20.
D) $25.

Question 41

Distinguish between full warranty and limited warranty.

Question 42

What does the "implied warranty of fitness for a particular purpose" require?

Question 43

Differentiate between express and implied warranties.