Question 1

Robert is selling his used lawnmower.He wants to disclaim any implied warranties.Robert

Accepted Answer

Including a written disclaimer that the lawnmower is being sold "as is" is the best way for Robert to disclaim any implied warranties. This will help protect him from any potential future legal issues if the lawnmower were to malfunction or break after the sale. Additionally, it is recommended that he orally disclose any known faults of the lawnmower to potential buyers to avoid any misunderstandings or disputes. A warranty of title is not relevant in this situation.

Question 2

Krissa,a horse breeder,shows Maggie,a customer looking for a new stallion for her breeding program,a stallion and tells her that the stallion is very fertile and can easily breed twenty mares per year.Krissa's statement is

Accepted Answer

Krissa's statement is a specific guarantee about the stallion's ability to breed twenty mares per year. This type of warranty is known as an express warranty, which is a statement made by the seller that assures the buyer of a specific aspect or feature of the product.

Question 3

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 4

Fancy's Feedlot orders one hundred sacks of cattle feed from Bovine Feeders,Inc.Each bag has the words "Twenty percent protein" printed on the front.This is

Accepted Answer

The words "Twenty percent protein" printed on the front of the bags constitutes an express warranty. An express warranty is a statement made by the seller about the goods being sold, which becomes a part of the basis of the bargain, and is relied upon by the buyer.

Question 5

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 6

Ocean Vessels,Inc.,and Pacific Harbor Company enter into a contract for a sale of a boat.Ocean is a merchant who deals in goods of the kind sold.The goods are defective.Under the UCC,the implied warranty of merchantability is breached

Accepted Answer

According to the UCC, the implied warranty of merchantability is breached regardless of whether the merchant knew or could have discovered the defect. This means that Ocean Vessels, Inc. is liable for breaching the warranty even if they were not aware of the defect at the time of the sale.

Question 7

GR8 Skates Company makes and sells a pair of skates to Hugh.GR8 fails to exercise "due care" to make the skates safe,and Hugh is injured as a result.GR8 is most likely liable for

Accepted Answer

GR8 Skates Company failed to exercise "due care" in creating a safe product, which constitutes negligence. Hugh did not assume the risk of using faulty skates, he did not misuse the product, and there is no evidence of knowledgeable use.

Question 8

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 implied warranty of fitness for a particular purpose arises under the UCC if the seller is a merchant who deals in goods of the kind sold. In this scenario, Regional Wood Products Company is selling lumber, which indicates that they deal in goods of that kind. Additionally, Sylvia has made known the purpose for which she will use the goods, which means that the warranty of fitness for that specific purpose is implied by law. Therefore, choice C is the correct answer. Option A is incorrect because the buyer's reliance on the seller to select the suitable goods is relevant to the implied warranty of merchantability, not fitness for a particular purpose. Option B is incorrect because a buyer's request for a warranty of fitness is not necessary for it to arise under the UCC. Option D is incorrect because the implied warranty of fitness for a particular purpose is applicable to both sales and lease contracts.

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

The answer of Trucks & Trailers,Inc.(T&T),and United Delivery Service enter...

Question 10

Sigrud buys spiked mountain-climbing shoes from Rockridge Gear store. The spikes come out of the shoes when Sigrud is on the side of a mountain,caus-ing her to be injured in a fall.Rockridge breached

Accepted Answer

The implied warranty of fitness for a particular purpose applies when the seller knows or should know the purpose for which the buyer intends to use the product and the buyer relies on the seller's expertise in selecting the product. In this case, Sigrud purchased spiked mountain-climbing shoes, indicating that she had a specific purpose in mind. Since the spikes came out of the shoes and caused her injury, it can be inferred that the shoes were not fit for their intended purpose, and the seller breached the implied warranty of fitness for a particular purpose.

Question 11

Sweet Candy,Inc.,and Tasty Treats stores enter into a contract for a sale of confections.Sweet,a merchant who deals in goods of the kind sold,makes express warranties in connection with the sale.Under the UCC,at the time a contract is formed,an express warranty can be disclaimed or modified

Accepted Answer

Under the UCC, an express warranty can be disclaimed or modified by clear, conspicuous language called to the buyer's attention. This means that the seller must use language that is easily visible and noticeable to the buyer, and the buyer must have the opportunity to read and understand the terms of the warranty disclaimer or modification.

Question 12

Olga,a salesperson for Pre-owned Cars & Trucks,Inc.,tells Quincy,"This is the best car I've ever seen." This statement is

Accepted Answer

Olga's statement is an example of puffery, which is an exaggerated or subjective claim that cannot be objectively proven. Puffery is not considered a legally binding statement or warranty.

Question 13

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

Accepted Answer

According to the Magnuson-Moss Warranty Act, ValuRich Tools, Inc. is required to provide consumers with a choice between a refund or replacement if a product cannot be fixed and repair or replacement of defective parts under a "full" warranty. Therefore, Choice A is the correct option.

Question 14

Fred goes to Carla,a knowledgeable dog breeder,and tells her that he wants to get a dog that will be good with small children.Carla sells Fred a dog.When Fred takes the dog home,it bites both his small children and causes them serious injuries.Fred can sue Carla for breach of

Accepted Answer

When a buyer relies on the seller's expertise and advice to purchase a product that will be suitable for a specific purpose, there is an implied warranty of fitness for a particular purpose. In this case, Fred specifically told Carla that he wanted a dog that would be good with small children, and Carla, being a knowledgeable dog breeder, sold him a dog. However, the dog ended up not being suitable for that purpose and caused serious harm to Fred's children. Therefore, Fred can sue Carla for breach of an implied warranty of fitness for a particular purpose.

Question 15

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

Accepted Answer

An express warranty is created when a seller makes a promise or affirmation of fact about a product that becomes part of the basis of the bargain, meaning the buyer relies on it in deciding to make the purchase. In this case, if Terrific Cars & Trucks made a promise about the SUV that influenced Sari's decision to buy it, an express warranty may be created. The other options, such as Sari expressing her desires or Terrific expressing expectations, do not necessarily create an express warranty.

Question 16

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 implied warranty of merchantability means that the goods are fit for the ordinary purpose for which such goods are used. Option A, fit for the buyer's particular purpose, is covered by the implied warranty of fitness for a particular purpose. Option C, suitable for resale at an acceptable price, is covered by the warranty of title and the warranty against infringement. Option D, the best quality that money can buy, is not a requirement of the implied warranty of merchantability, which only requires that the goods are of average quality and suitable for their ordinary purpose.

Question 17

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

Accepted Answer

The Magnuson-Moss Warranty Act requires that a "full warranty" meet certain requirements, including that the warranty lasts for a specified period of time and provides for the repair or replacement of any defective part without charge to the consumer. Limited warranties do not meet all of these requirements and therefore are not considered "full warranties."

Question 18

Good Tire Company and Hiway Auto Service enter into a contract for a sale of tires.Good Tire 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 sales contracts if the seller is a merchant who deals in goods of the kind sold. This warranty ensures that the goods sold are fit for their ordinary purpose and comply with the standards of the trade. The buyer does not need to ask for it, and the seller cannot disclaim it.

Question 19

Ceramic Tile Company designs and makes floor tiles.In a product liability suit based on negligence,Ceramic could be liable for vio-lating its duty of care with respect to

Accepted Answer

Ceramic Tile Company can be liable for violating its duty of care with respect to both the design and the making of the tiles. The company has a duty to design and manufacture the tiles in a manner that is safe for consumers to use. If the company fails to meet this duty, it can be held liable for any injuries or damages that result from the use of its products. Therefore, in a product liability suit based on negligence, Ceramic could be liable for both the design and the making of the tiles.

Question 20

John is an art dealer with special expertise in modern art.Rachel comes to John's gallery to purchase a modern art painting as an investment.John showsher several paintings that he says are high quality and will increase in value in the next ten years.John's statement is

Accepted Answer

The answer of John is an art dealer with special...

Quiz 16: Warranties and Product Liability