Question 1

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?

Accepted Answer

The provision of a sample or model that is intended to demonstrate the characteristics of a product can create an express warranty that the actual product will conform to the represented qualities. In this case, by giving a sample of dog shampoo that is claimed to prevent shedding after one use, an express warranty is created that the shampoo will perform as claimed.

Question 2

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

Accepted Answer

This statement creates an express warranty because it is a specific claim about the product's capability, directly affirming the quality or function of the knife, which the buyer can rely upon.

Question 3

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

Accepted Answer

The answer of What is one of the two ways...

Question 4

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

Accepted Answer

Implied warranties under common law include warranties of assignability, which are not explicitly stated but are assumed to be part of the contract, ensuring that the rights or property can be transferred or assigned.

Question 5

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

Accepted Answer

Misrepresentations that a buyer relies on can become part of the contract as express warranties if they are considered to be affirmations of fact or promises that relate to the goods and become part of the basis of the bargain.

Question 6

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

Accepted Answer

An express warranty is a material term of the sale or lease contract, as it is explicitly stated and agreed upon by the parties involved.

Question 7

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?

Accepted Answer

Gianna is correct because by selling the toaster, the seller made an implied warranty of merchantability, which means the toaster should be fit for the ordinary purposes for which such goods are used, including being safe to plug in and use.

Question 8

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?

Accepted Answer

The court ruled that the plaintiff could not recover because the bone was not a foreign substance to the fish and should have been expected, indicating that the presence of small fish bones in canned tuna does not constitute a breach of warranty or product defect under the circumstances described.

Question 9

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?

Accepted Answer

The court awarded the plaintiff the veterinary bills because it found that the Uniform Commercial Code (UCC) applied to the transaction and that the seller breached the warranty of merchantability, which is a promise implicitly made by a merchant who deals in goods of the kind sold that the goods are fit for the ordinary purposes for which such goods are used.

Question 10

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

Accepted Answer

Merchantability, as defined in the Uniform Commercial Code (UCC), includes requirements that goods pass without objection in the trade (A), are fit for the ordinary purposes for which such goods are used (B), are adequately contained, packaged, and labeled as the agreement may require (C), and conform to the promises or affirmations made on the container or label, if any (D). The concept does not require that goods be sold without any variation (E), as variations can be acceptable within certain tolerances defined by the trade or agreement.

Question 11

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

Accepted Answer

In Kazakhstan, the term "warranty" in the context of Western law is referred to as a "pledge." This reflects a difference in legal terminology and concepts across different jurisdictions.

Question 12

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

Accepted Answer

An express warranty is created when the seller makes a specific promise regarding the quality, description, or performance of the goods being sold, which then becomes a part of the contract. This can include any description of the goods' physical nature or how they can be used, making option A correct.

Question 13

What is the warranty of assignability at common law?

Accepted Answer

The warranty of assignability at common law implies that when a party assigns a contract to another party, the assignor is guaranteeing that the rights being assigned are indeed valid and enforceable. This does not involve warranties related to merchantability or fitness for a particular purpose, which are concepts more commonly associated with the sale of goods rather than the assignment of contractual rights.

Question 14

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?

Accepted Answer

The implied warranty of merchantability requires that the seller be a merchant dealing in goods of the kind sold. It applies to both sales and leases, making option D correct.

Question 15

Which of the following is false regarding express warranties?

Accepted Answer

Express warranties can indeed arise from a salesperson's oral promise, contrary to the statement in option B. Express warranties are affirmations of fact or promises made by the seller to the buyer about the goods or services being sold, which can be created through descriptions, samples, models, or oral statements made by the seller.

Question 16

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

Accepted Answer

The implied warranty of fitness for a particular purpose can apply to any seller, not just merchants, if the seller knows or has reason to know the particular purpose for which the goods are required and that the buyer is relying on the seller's skill or judgment to select or furnish suitable goods.

Question 17

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:

Accepted Answer

This statement is an example of an express warranty because it explicitly states that the motor oil will keep your engine cleaner than any other motor oil, and offers a money-back guarantee if this promise is not met.

Question 18

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?

Accepted Answer

The court ruled that the plaintiff could not recover because the bone was not a foreign substance to the fish chowder and should have been expected by the consumer. This case is often cited in discussions of the implied warranty of merchantability and what constitutes a "foreign" substance in food.

Question 19

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?

Accepted Answer

The answer of Joseph decides he no longer needs his...

Question 20

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?

Accepted Answer

Joann has an implied warranty of fitness for a particular purpose because she relied on Jesse's skill or judgment to select or furnish suitable goods, and Jesse was aware she needed glue for fabric.

Quiz 25: Warranties