Question 1

Watercourse 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 Watercourse Pipe Company includes in its contracts...

Question 2

Regal Autos,Inc.,sells cars to consumers.To avoid liability for oral ex-press warranties,each sales agreement should note that a car is sold​

Accepted Answer

The answer of Regal Autos,Inc.,sells cars to consumers.To avoid liability...

Question 3

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

To avoid liability for implied warranties, Band Instruments should state in writing that the trombones are sold "as is." This means that the buyer is responsible for inspecting the item and accepting any defects that come with it, without any expectation of warranty or guarantee from the seller.

Question 4

Dependable Appliances,Inc.,and Elaine enter into a contract for a sale of kitchen appliances.Dependable,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

The UCC states that the implied warranty of merchantability means that goods are fit for the ordinary purpose for which such goods are used. Therefore, option B is the correct choice. Option A is referring to the warranty of fitness for a particular purpose, which is different from merchantability. Option C is not relevant to the implied warranty of merchantability. Option D is too vague and subjective to be considered as an accurate statement.

Question 5

Mountain Bikes,Inc.(MBI),and Nero enter into a contract for a sale of a mountain bike.MBI,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 attempts to prevent deception in warranties by​

Accepted Answer

The answer of Mountain Bikes,Inc.(MBI),and Nero enter into a contract...

Question 6

Chord Guitars Inc.sells guitars and other stringed instruments to consumers.A Chord salesperson says to a potential customer,"This Chord is the best guitar you'll find anywhere,even online." This statement is​

Accepted Answer

This statement is an example of puffery, which is exaggerated advertising claims that do not make a specific factual representation or promise about the product. It is unlikely to be considered a warranty of any kind.

Question 7

Street Bikes,Inc.,makes and sells a bicycle to Theo.Street Bikes fails to exercise "due care" to make the bicycle safe,however,and Theo is injured as a result.Street Bikes is most likely liable for​

Accepted Answer

Street Bikes failed to exercise "due care" in making the bicycle safe, which is a breach of their duty of care. This negligence resulted in Theo's injury, making Street Bikes liable for the harm caused. Options A, B, and D are not applicable in this scenario.

Question 8

Sari buys a new sport utility vehicle (SUV)from Terrific Cars & Trucks,Inc.The most important factor in determining whether an ex-press warranty is created is whether​

Accepted Answer

In order for an express warranty to be created, there must be a promise made by the seller that becomes part of the basis of the bargain. This means that the promise must be one of the main reasons that the buyer decides to purchase the product. In this case, if Terrific Cars & Trucks, Inc. made a promise about the SUV that led Sari to purchase it, then an express warranty would be created. The other choices (A, B, and C) do not necessarily create an express warranty on their own.

Question 9

Trucks & Trailers,Inc.(T&T),and United Delivery Service enter into a contract for a lease of trucks.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 automatically in sales and lease contracts where the lessor or seller is a merchant dealing with goods of the kind. Therefore, as Trucks & Trailers, Inc. is a merchant dealing in trucks, the implied warranty of merchantability arises automatically in the lease contract.

Question 10

Blanche,a salesperson for Custom Restaurant Equipment,Inc.,shows Dylan,a buyer for Eat n' Dine Company,display items in Custom's showroom,stating that any purchased equipment will match the display.This statement is​

Accepted Answer

The statement made by Blanche is an express warranty, as it is a specific promise made by the seller to the buyer that the equipment they purchase will match the display items in the showroom.

Question 11

Regional Wood Products Company and Sylvia enter into a contract for a sale of lumber.Regional knows the purpose for which Sylvia will use the goods.Under the UCC,an implied warranty of fitness of a particular purpose arises​

Accepted Answer

The UCC's implied warranty of fitness of a particular purpose arises only if the seller is a merchant who deals in goods of the kind sold, regardless of whether or not the buyer specifically asked for it. This means that in the scenario given, Regional would be expected to deliver lumber that is fit for the purpose that Sylvia has made known to them.

Question 12

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 MotorCo box is an express warranty which specifically states that the box contains one gross (144) sparkplugs of assorted sizes. It is not an implied warranty of fitness for a particular purpose or an implied warranty of merchantability, as it does not make any statements regarding the quality or fitness of the sparkplugs for a particular purpose.

Question 13

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's statement is an express warranty because he is explicitly and directly asserting that the painting is by Picasso.

Question 14

Freddi buys bike shoes from Get n' Gear Store,telling the clerk that she wants the shoes to compete in High Pace Triathlon.The shoes break apart during the competition,causing Freddi to be injured in a fall.Get n' Gear most likely breached

Accepted Answer

Freddi explicitly told the clerk that she wanted the shoes to compete in a triathlon, implying that she was relying on the seller's expertise to provide shoes that were suitable for this specific purpose. Therefore, there was an implied warranty of fitness for a particular purpose, which was breached when the shoes broke apart during the competition and caused injury to Freddi.

Question 15

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 for merchants who deal in goods of the kind being sold. This warranty means that the goods sold are fit for their ordinary purpose, are adequately packaged and labeled, and conform to any promises or affirmations of fact made by the seller. The warranty may also cover any implied warranties of fitness for a particular purpose or conformity to a sample or model if those warranties arise under the circumstances of the sale.

Question 16

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, which is allowed under the Magnuson-Moss Warranty Act.

Question 17

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 requires that goods sold by a merchant be fit for their intended purpose and of average quality in the trade. The fact that the skis snapped in two during their first use indicates that they were not of average quality and, therefore, Beginners Run breached the implied warranty of merchantability. The fact that they could not have discovered the defect does not negate this breach.

Question 18

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 19

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 full warranties provide free repair or replacement of any defective part. Therefore, HandiTools must offer this as part of their full warranty.

Question 20

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

Accepted Answer

Martin, the service technician, advised Kramer on the specific items to use based on the lawn's conditions. This shows an implied warranty of fitness for a specific purpose, which means that the items suggested by Martin were intended for a particular goal, which was to maintain Kramer's overgrown and rocky lawn. Since the items recommended by Martin failed to serve the intended purpose and consequently caused the mower to break down, Kramer can recover the cost from Lawn & Garden for the implied warranty of fitness for a particular purpose.

Quiz 21: Warranties and Product Liability

Watercourse 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

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

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

Dependable Appliances,Inc.,and Elaine enter into a contract for a sale of kitchen appliances.Dependable,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

Mountain Bikes,Inc.(MBI) ,and Nero enter into a contract for a sale of a mountain bike.MBI,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 attempts to prevent deception in warranties by

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

Street Bikes,Inc.,makes and sells a bicycle to Theo.Street Bikes fails to exercise "due care" to make the bicycle safe,however,and Theo is injured as a result.Street Bikes is most likely liable for

Sari buys a new sport utility vehicle (SUV) from Terrific Cars & Trucks,Inc.The most important factor in determining whether an ex-press warranty is created is whether

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

Blanche,a salesperson for Custom Restaurant Equipment,Inc.,shows Dylan,a buyer for Eat n' Dine Company,display items in Custom's showroom,stating that any purchased equipment will match the display.This statement is

Regional Wood Products Company and Sylvia enter into a contract for a sale of lumber.Regional knows the purpose for which Sylvia 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

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

Freddi buys bike shoes from Get n' Gear Store,telling the clerk that she wants the shoes to compete in High Pace Triathlon.The shoes break apart during the competition,causing Freddi to be injured in a fall.Get n' Gear most likely breached

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

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

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

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

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 21: Warranties and Product Liability

Watercourse 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​

Regal Autos,Inc.,sells cars to consumers.To avoid liability for oral ex-press warranties,each sales agreement should note that a car is sold​

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​

Dependable Appliances,Inc.,and Elaine enter into a contract for a sale of kitchen appliances.Dependable,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​

Mountain Bikes,Inc.(MBI) ,and Nero enter into a contract for a sale of a mountain bike.MBI,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 attempts to prevent deception in warranties by​

Chord Guitars Inc.sells guitars and other stringed instruments to consumers.A Chord salesperson says to a potential customer,"This Chord is the best guitar you'll find anywhere,even online." This statement is​

Street Bikes,Inc.,makes and sells a bicycle to Theo.Street Bikes fails to exercise "due care" to make the bicycle safe,however,and Theo is injured as a result.Street Bikes is most likely liable for​

Sari buys a new sport utility vehicle (SUV) from Terrific Cars & Trucks,Inc.The most important factor in determining whether an ex-press warranty is created is whether​

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

Blanche,a salesperson for Custom Restaurant Equipment,Inc.,shows Dylan,a buyer for Eat n' Dine Company,display items in Custom's showroom,stating that any purchased equipment will match the display.This statement is​

Regional Wood Products Company and Sylvia enter into a contract for a sale of lumber.Regional knows the purpose for which Sylvia 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​

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​

Freddi buys bike shoes from Get n' Gear Store,telling the clerk that she wants the shoes to compete in High Pace Triathlon.The shoes break apart during the competition,causing Freddi to be injured in a fall.Get n' Gear most likely breached

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​

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​

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​

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​

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​

Watercourse 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

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

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

Dependable Appliances,Inc.,and Elaine enter into a contract for a sale of kitchen appliances.Dependable,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

Mountain Bikes,Inc.(MBI) ,and Nero enter into a contract for a sale of a mountain bike.MBI,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 attempts to prevent deception in warranties by

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

Street Bikes,Inc.,makes and sells a bicycle to Theo.Street Bikes fails to exercise "due care" to make the bicycle safe,however,and Theo is injured as a result.Street Bikes is most likely liable for

Sari buys a new sport utility vehicle (SUV) from Terrific Cars & Trucks,Inc.The most important factor in determining whether an ex-press warranty is created is whether

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

Blanche,a salesperson for Custom Restaurant Equipment,Inc.,shows Dylan,a buyer for Eat n' Dine Company,display items in Custom's showroom,stating that any purchased equipment will match the display.This statement is

Regional Wood Products Company and Sylvia enter into a contract for a sale of lumber.Regional knows the purpose for which Sylvia 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

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

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

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

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

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

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