Question 1

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

Accepted Answer

The Magnuson-Moss Warranty Act applies to written express warranties on consumer products.

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?

Accepted Answer

An implied warranty of title is a promise made by the seller that they have the right to sell the property and that there are no liens or encumbrances against it from unpaid debts, such as loans. This warranty is automatically included in most sales of goods unless explicitly disclaimed.

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?

Accepted Answer

The Uniform Commercial Code (UCC) includes an implied warranty of noninfringement in Section 2-312(3). This section specifically requires merchants to warrant that the goods shall be delivered free of the rightful claim of any third person by way of infringement or the like. This warranty is implied unless excluded or modified by the contract.

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:

Accepted Answer

This statement is an example of a warranty, specifically a disclaimer of warranties, where the seller limits their liability by stating that no other warranties, express or implied, are made beyond what is explicitly stated.

Question 5

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

Accepted Answer

The implied warranty of merchantability applies specifically to sales made by merchant sellers, indicating that the goods sold are fit for the ordinary purposes for which such goods are used. This warranty does not automatically apply to sales made by non-merchants or laypersons.

Question 6

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

Accepted Answer

To disclaim a warranty, the seller must present the disclaimer in a manner that is easily noticeable to the buyer, such as through the use of capital letters or bold print. This ensures that the disclaimer is conspicuous and the buyer is aware of it.

Question 7

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

Accepted Answer

Warranties are recognized as legally enforceable promises under state statutory laws based on Article 2 of the Uniform Commercial Code (UCC), which governs the sale of goods.

Question 8

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

Accepted Answer

An express warranty is created when the seller makes a specific promise regarding the goods or a representation of fact about the goods. This can include descriptions of the goods, affirmations of fact made by the seller, or providing a sample or model which forms the basis of the bargain.

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:

Accepted Answer

The UCC (Uniform Commercial Code) provides for implied warranties, such as the implied warranty of merchantability, which protects buyers even if no specific promises or representations are made by the seller.

Question 10

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

Accepted Answer

The answer of As a practical matter, seller representations are...

Question 11

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

Accepted Answer

This statement is an express warranty because it is a specific claim or representation made by the seller about the product's performance or quality that the buyer can rely upon.

Question 12

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

Accepted Answer

Section 2-312 of the Uniform Commercial Code (UCC) includes the implied warranty of title, which requires the seller to guarantee that the goods are free of any security interests, liens, or encumbrances unknown to the buyer.

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.

Accepted Answer

The phrase "as-is" is commonly used and recognized in legal contexts to disclaim implied warranties, including the implied warranties of fitness for a particular purpose and noninfringement. This means that the buyer accepts the item in its current condition without any guarantees from the seller regarding its quality or suitability for a specific use.

Question 14

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

Accepted Answer

The UCC (Uniform Commercial Code) allows a seller to disclaim both implied and express warranties under certain conditions, provided that the disclaimer is made clearly and conforms to specific requirements set forth in the UCC.

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.

Accepted Answer

The UCC requires that any disclaimer of the warranty of title must clearly indicate to the buyer that the seller is not conveying free and clear title to the goods. This ensures the buyer is aware of any limitations on the title being transferred.

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.

Accepted Answer

An express warranty is a specific, clearly stated warranty regarding a promise or statement of fact about the goods, which the seller is obligated to fulfill. This contrasts with implied warranties, which are not explicitly stated but are legally assumed in a sale.

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:

Accepted Answer

This is an example of a warranty, specifically a disclaimer of warranties, where the seller limits their liability by stating that no other warranties, express or implied, are made beyond the express warranty provided.

Question 18

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

Accepted Answer

The Uniform Commercial Code (UCC) allows a seller to disclaim defects by making the goods available to the buyer for inspection, enabling the buyer to assess the quality and condition of the goods before completing the purchase.

Question 19

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

Accepted Answer

The answer of The law has evolved to protect consumers...

Question 20

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

Accepted Answer

Vertical privity refers to the relationship between parties at different levels of the distribution chain, such as manufacturers and retailers.

Quiz 18: Sales Warranties

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

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?

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?

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

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

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

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

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

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

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

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

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.

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

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.

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

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

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

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