Question 1

Wheels Inc. sells bicycles. Under most circumstances, Wheels will be presumed to have warranted that its title to the bikes is

Accepted Answer

Under the Uniform Commercial Code, a seller like Wheels Inc. is presumed to provide a good and valid title to the products it sells. This means that the seller warrants that it has the legal right to sell the goods and that the buyer will not be subjected to any lawful claims against the title.

Question 2

Arnold buys a backhoe from Big Dig Equipment Inc. Arnold is unaware that Credit Collection Company holds a lien against the backhoe when he buys it. If Credit Collection repossesses the backhoe, Arnold can​

Accepted Answer

Arnold can recover from Big Dig for breach of warranty because when Big Dig sold the backhoe to Arnold, they implicitly warranted that the title was clear of any liens or claims, such as the one held by Credit Collection Company.

Question 3

Lighter Than Air, Inc., and Mario enter into a contract for a sale of a hang glider. Lighter Than Air, a merchant who deals in goods of the kind sold, makes implied and express warranties in connection with the sale. The Magnuson-Moss Warranty Act was designed to prevent deception in warranties by

Accepted Answer

The Magnuson-Moss Warranty Act was designed to prevent deception in warranties by making warranties easier to understand.

Question 4

​Kanye goes to a Lawn & Yard store to tune up his mower. Marty, the service technician, learns that Kanye's lawn is overgrown and rocky, and advises the use of a certain type of oil, plug, filter, and blade. Later, the mower breaks down due to the use of the items recommended by Marty. Kanye may recover from Lawn & Garden for breach of

Accepted Answer

Marty, the service technician, recommended specific items for Kanye's mower based on his knowledge of the lawn's conditions. This recommendation implies an implied warranty of fitness for a particular purpose. If the items recommended by Marty failed to work adequately and resulted in the breakdown of the mower, Kanye may hold Lawn & Garden responsible for breach of this warranty.

Question 5

Drive-Away Autos, Inc., sells cars to consumers. To avoid liability for oral express warranties, each Drive-Away sales agreement should note that a car is sold

Accepted Answer

The answer of Drive-Away Autos, Inc., sells cars to consumers....

Question 6

Replay Sports Stores and SportsPower Products, Inc., enter into a contract for a sale of trampolines. SportsPower Products is a merchant who deals in goods of the kind sold. Under the UCC, an implied warranty of merchantability arises

Accepted Answer

Under the UCC, an implied warranty of merchantability arises automatically in most contracts for a sale of goods if the seller is a merchant who deals in goods of the kind sold. In this case, SportsPower Products is a merchant who deals in trampolines, so an implied warranty of merchantability arises automatically. Option B is incorrect because the buyer does not need to ask for such a warranty. Option C is incorrect because the seller does not need to express such a warranty, and Option D is incorrect because this applies to both lease contracts and sales contracts.

Question 7

Home Remodelers, Inc., and Imogen enter into a contract for a sale of cabinets and countertops. Home Remodelers, a merchant who deals in goods of the kind sold, notes that its goods come with an implied warranty of merchantability. Under the UCC, this means that the goods are reasonably

Accepted Answer

Under the UCC, an implied warranty of merchantability means that the goods being sold are fit for the ordinary purpose for which such goods are used. Option A refers to an implied warranty of fitness for a particular purpose, which is a separate warranty. Option C refers to a warranty of title, and option D is incorrect as it is not a requirement for an implied warranty of merchantability.

Question 8

Pat's Pet Houses, Inc. sells shelters for animals under "limited" warranties. Under the Magnuson-Moss Warranty Act, this means that the warranties on the shelters from Pat's

Accepted Answer

"Limited" warranties typically limit the buyers' recourse in some fashion, such as by specifying certain excluded parts or actions that invalidate the warranty.

Question 9

Band Instruments, Inc., sells seventy-six trombones to Community & School Band Source, Inc. To avoid liability for most implied warranties, Band Instruments should state in writing that the trombones are sold

Accepted Answer

Stating that the trombones are sold "as is" would explicitly waive any implied warranties and shift the responsibility for any defects or issues onto the buyer. This phrasing would provide the most protection for Band Instruments, Inc.

Question 10

Construction Products Company and Dante enter into a contract for a sale of bricks and stones. Construction Products knows the purpose for which Dante will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises

Accepted Answer

An implied warranty of fitness for a particular purpose arises when the seller knows the specific purpose for which the buyer needs the goods and the buyer relies on the seller's expertise to select suitable goods.

Question 11

Water Pipe Company includes in its contracts a provision that reads, in large red letters, "There are no warranties that extend beyond the description on the face hereof." This disclaimer negates

Accepted Answer

The answer of Water Pipe Company includes in its contracts...

Question 12

Eliza buys a new motorcycle from Fab Cycles, Inc. The most important factor in determining whether an express warranty is created is whether

Accepted Answer

The most important factor in determining whether an express warranty is created is whether Fab Cycles's promise becomes part of the basis of the bargain. In other words, if the promise is a significant factor in the buyer's decision to make the purchase, it may be considered an express warranty.

Question 13

Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis, they snap in two. The cause is something that Beginners Run did not know about and could not have discovered. Beginners Run breached

Accepted Answer

The implied warranty of merchantability ensures that goods are fit for the ordinary purposes for which such goods are used. The skis breaking indicates they were not fit for their intended use, thus breaching this warranty.

Question 14

Quade is an expert in twentieth-century art. Rachel visits Quade's gallery, seeking to buy artwork as an investment. Quade shows her a painting that in his opinion is by Picasso. Quade's statement is

Accepted Answer

Quade is making a specific statement about the quality and authenticity of the painting, which can be considered an express warranty.

Question 15

Chord Guitars Inc. sells guitars to consumers. A Chord salesperson says to a potential customer, "This Chord is the best guitar you'll find anywhere." This statement is

Accepted Answer

The statement made by the salesperson is subjective and exaggerated, and is not intended to be taken as a factual representation of the product's quality or performance. This type of statement is commonly referred to as puffery, and is not considered to be a legally binding representation of the product.

Question 16

Trucks & Trailers, Inc. (T&T), and United Express Service enter into a contract for a lease of vehicles. T&T is a merchant who deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises

Accepted Answer

Under the UCC, an implied warranty of merchantability arises in most contracts for the lease of goods when the lessor is a merchant who regularly deals in goods of the kind leased. The warranty ensures that the goods being leased are fit for their ordinary purposes, adequately packaged and labeled, conform to promises or affirmations made about them, and are of fair quality. The warranty arises automatically, without the need for the lessee to ask for it or the lessor to express it explicitly.

Question 17

Riverside Mill and Standard Contractors enter into a contract for a sale of lumber. The mill knows the purpose for which the buyer will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises​

Accepted Answer

According to the UCC, an implied warranty of fitness for a particular purpose only arises if the seller is a merchant who deals in goods of the kind sold and the buyer is relying on the seller's expertise to select suitable goods. As Riverside Mill is selling lumber and is a merchant who deals in goods of the kind sold, and the buyer is relying on their expertise to select suitable lumber, an implied warranty of fitness for a particular purpose arises. Therefore, choice C is the best answer.

Question 18

MotorCo Inc. makes and sells auto parts to retail repair services, vehicle sales outlets, and consumer parts stores. On one MotorCo box is a label that reads "Contains one gross (144) sparkplugs, assorted sizes." This statement is

Accepted Answer

The label on the box is an express warranty because it is a statement by MotorCo Inc. that the box contains one gross of assorted sized sparkplugs.

Question 19

Fred buys running shoes from Gear Store, telling the clerk that he wants the shoes to compete in High Pace Triathlon. The shoes break apart during the competition, causing Fred to fall and sustain an injury. The seller most likely breached

Accepted Answer

When Fred specified that he wanted the shoes for a High Pace Triathlon competition, it became the seller's responsibility to ensure that the shoes were fit for the purpose. By selling shoes that broke apart during the competition, the seller violated the implied warranty of fitness for a particular purpose.

Question 20

HandiTools, Inc., sells power tools, power tool parts, and related supplies under "full" warranties. Under the Magnuson-Moss Warranty Act, this means that HandiTools must provide

Accepted Answer

The Magnuson-Moss Warranty Act requires that products sold with "full" warranties must provide free repair or replacement of any defective part.

Quiz 23: Warranties

Wheels Inc. sells bicycles. Under most circumstances, Wheels will be presumed to have warranted that its title to the bikes is

Arnold buys a backhoe from Big Dig Equipment Inc. Arnold is unaware that Credit Collection Company holds a lien against the backhoe when he buys it. If Credit Collection repossesses the backhoe, Arnold can

Lighter Than Air, Inc., and Mario enter into a contract for a sale of a hang glider. Lighter Than Air, a merchant who deals in goods of the kind sold, makes implied and express warranties in connection with the sale. The Magnuson-Moss Warranty Act was designed to prevent deception in warranties by

Drive-Away Autos, Inc., sells cars to consumers. To avoid liability for oral express warranties, each Drive-Away sales agreement should note that a car is sold

Replay Sports Stores and SportsPower Products, Inc., enter into a contract for a sale of trampolines. SportsPower Products is a merchant who deals in goods of the kind sold. Under the UCC, an implied warranty of merchantability arises

Home Remodelers, Inc., and Imogen enter into a contract for a sale of cabinets and countertops. Home Remodelers, a merchant who deals in goods of the kind sold, notes that its goods come with an implied warranty of merchantability. Under the UCC, this means that the goods are reasonably

Pat's Pet Houses, Inc. sells shelters for animals under "limited" warranties. Under the Magnuson-Moss Warranty Act, this means that the warranties on the shelters from Pat's

Band Instruments, Inc., sells seventy-six trombones to Community & School Band Source, Inc. To avoid liability for most implied warranties, Band Instruments should state in writing that the trombones are sold

Construction Products Company and Dante enter into a contract for a sale of bricks and stones. Construction Products knows the purpose for which Dante will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises

Water Pipe Company includes in its contracts a provision that reads, in large red letters, "There are no warranties that extend beyond the description on the face hereof." This disclaimer negates

Eliza buys a new motorcycle from Fab Cycles, Inc. The most important factor in determining whether an express warranty is created is whether

Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis, they snap in two. The cause is something that Beginners Run did not know about and could not have discovered. Beginners Run breached

Quade is an expert in twentieth-century art. Rachel visits Quade's gallery, seeking to buy artwork as an investment. Quade shows her a painting that in his opinion is by Picasso. Quade's statement is

Chord Guitars Inc. sells guitars to consumers. A Chord salesperson says to a potential customer, "This Chord is the best guitar you'll find anywhere." This statement is

Trucks & Trailers, Inc. (T&T) , and United Express Service enter into a contract for a lease of vehicles. T&T is a merchant who deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises

Riverside Mill and Standard Contractors enter into a contract for a sale of lumber. The mill knows the purpose for which the buyer will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises

MotorCo Inc. makes and sells auto parts to retail repair services, vehicle sales outlets, and consumer parts stores. On one MotorCo box is a label that reads "Contains one gross (144) sparkplugs, assorted sizes." This statement is

Fred buys running shoes from Gear Store, telling the clerk that he wants the shoes to compete in High Pace Triathlon. The shoes break apart during the competition, causing Fred to fall and sustain an injury. The seller most likely breached

HandiTools, Inc., sells power tools, power tool parts, and related supplies under "full" warranties. Under the Magnuson-Moss Warranty Act, this means that HandiTools must provide

Quiz 23: Warranties

Wheels Inc. sells bicycles. Under most circumstances, Wheels will be presumed to have warranted that its title to the bikes is

Arnold buys a backhoe from Big Dig Equipment Inc. Arnold is unaware that Credit Collection Company holds a lien against the backhoe when he buys it. If Credit Collection repossesses the backhoe, Arnold can​

Lighter Than Air, Inc., and Mario enter into a contract for a sale of a hang glider. Lighter Than Air, a merchant who deals in goods of the kind sold, makes implied and express warranties in connection with the sale. The Magnuson-Moss Warranty Act was designed to prevent deception in warranties by

Drive-Away Autos, Inc., sells cars to consumers. To avoid liability for oral express warranties, each Drive-Away sales agreement should note that a car is sold

Replay Sports Stores and SportsPower Products, Inc., enter into a contract for a sale of trampolines. SportsPower Products is a merchant who deals in goods of the kind sold. Under the UCC, an implied warranty of merchantability arises

Home Remodelers, Inc., and Imogen enter into a contract for a sale of cabinets and countertops. Home Remodelers, a merchant who deals in goods of the kind sold, notes that its goods come with an implied warranty of merchantability. Under the UCC, this means that the goods are reasonably

Pat's Pet Houses, Inc. sells shelters for animals under "limited" warranties. Under the Magnuson-Moss Warranty Act, this means that the warranties on the shelters from Pat's

Band Instruments, Inc., sells seventy-six trombones to Community & School Band Source, Inc. To avoid liability for most implied warranties, Band Instruments should state in writing that the trombones are sold

Construction Products Company and Dante enter into a contract for a sale of bricks and stones. Construction Products knows the purpose for which Dante will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises

Water Pipe Company includes in its contracts a provision that reads, in large red letters, "There are no warranties that extend beyond the description on the face hereof." This disclaimer negates

Eliza buys a new motorcycle from Fab Cycles, Inc. The most important factor in determining whether an express warranty is created is whether

Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis, they snap in two. The cause is something that Beginners Run did not know about and could not have discovered. Beginners Run breached

Quade is an expert in twentieth-century art. Rachel visits Quade's gallery, seeking to buy artwork as an investment. Quade shows her a painting that in his opinion is by Picasso. Quade's statement is

Chord Guitars Inc. sells guitars to consumers. A Chord salesperson says to a potential customer, "This Chord is the best guitar you'll find anywhere." This statement is

Trucks & Trailers, Inc. (T&T) , and United Express Service enter into a contract for a lease of vehicles. T&T is a merchant who deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises

Riverside Mill and Standard Contractors enter into a contract for a sale of lumber. The mill knows the purpose for which the buyer will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises​

MotorCo Inc. makes and sells auto parts to retail repair services, vehicle sales outlets, and consumer parts stores. On one MotorCo box is a label that reads "Contains one gross (144) sparkplugs, assorted sizes." This statement is

Fred buys running shoes from Gear Store, telling the clerk that he wants the shoes to compete in High Pace Triathlon. The shoes break apart during the competition, causing Fred to fall and sustain an injury. The seller most likely breached

HandiTools, Inc., sells power tools, power tool parts, and related supplies under "full" warranties. Under the Magnuson-Moss Warranty Act, this means that HandiTools must provide

Arnold buys a backhoe from Big Dig Equipment Inc. Arnold is unaware that Credit Collection Company holds a lien against the backhoe when he buys it. If Credit Collection repossesses the backhoe, Arnold can

Riverside Mill and Standard Contractors enter into a contract for a sale of lumber. The mill knows the purpose for which the buyer will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises