Question 1

Eden Valley Ranch and Farm Supply Corporation enter into a contract for a sale of fencing materials. Farm Supply, a merchant who deals in goods of the kind, makes implied and express warranties in connection with the sale. Under the UCC, if these are inconsistent

Accepted Answer

The answer of Eden Valley Ranch and Farm Supply Corporation...

Question 2

Phoenix, a salesperson for Quality Fruit, Inc., shows Robert, a buyer for Sweet Home Fruit Company, samples of peaches, stating that any ship?ment will match the samples. This statement is

Accepted Answer

Phoenix's statement is an express warranty because it is a specific promise made by the seller regarding the quality of the product.

Question 3

Riverside Ranch is a horse breeding facility. Steed Stables is a customer looking for a new stallion for its breeding program. Riverside's representative Tomas shows Steed a stallion that he says is very fertile and can easily breed twenty mares per year. This statement is

Accepted Answer

Tomas's statement about the stallion's fertility and breeding capacity is a specific representation of fact that can be relied upon by Steed in making its decision. This is known as an express warranty.

Question 4

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 applies automatically to leases where the lessor is a merchant who deals in goods of the kind being leased. The lessee does not need to ask for such a warranty, and the lessor does not need to express it explicitly. Therefore, option A is correct.Option B and C are incorrect because the warranty of merchantability applies automatically and does not depend on the lessee's request or the lessor's expression. Option D is incorrect because the implied warranty of merchantability applies to both sales contracts and lease contracts.

Question 5

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 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

According to the UCC, when a merchant sells goods of the kind sold, an implied warranty of merchantability arises automatically. Therefore, in this scenario, SportsPower Products, being a merchant dealing in trampolines, would automatically provide an implied warranty of merchantability for their trampolines sold to Replay Sports Stores.

Question 7

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

This disclaimer negates the implied warranty of fitness for a particular purpose, as it explicitly states that no warranties extend beyond what is described in the contract.

Question 8

Rita eats Salsa Caliente made and sold by Salsa Zest Corporation and becomes ill. Rita files a suit against Salsa Zest, alleging that its product was not merchantable. Merchantable food is food that is fit to eat on the basis of

Accepted Answer

Merchantable food is food that meets the reasonable expectations of consumers in terms of safety, quality, and fitness for consumption. Therefore, A is the correct choice as it describes the basis of merchantability. B, C, and D are incorrect as they do not address the consumer's expectations, which are the key factor in determining merchantability.

Question 9

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

Accepted Answer

Including a clause that warranties are only those included in the written contract helps avoid liability for any oral express warranties that might have been made during the sales process.

Question 10

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

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Question 11

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

By stating that the trombones are sold "as is," Band Instruments is indicating that they are not making any implied warranties about the quality or condition of the product. This will help to limit their liability if any issues arise with the trombones after they have been sold.

Question 12

Medical Equipment Supply Company and Natural Rehabilitation Center enter into a contract for a lease of a certain number of wheelchairs. Medical Equipment assures the lessee that it has valid title to the goods. Under the UCC, this type of title warranty arises

Accepted Answer

Under the UCC, there are certain warranties that automatically arise in a sales or lease contract, one of which is the warranty of title. This warranty assures the buyer or lessee that the seller or lessor has valid title to the goods being sold or leased. Therefore, Medical Equipment's assurance to Natural Rehabilitation Center that it has valid title to the wheelchairs creates an automatic warranty of title under the UCC.

Question 13

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, caus?ing Freddi to be injured in a fall. Get n' Gear most likely breached

Accepted Answer

By telling the clerk that she wanted the shoes for competing in a High Pace Triathlon, Freddi impliedly warranted that she needed shoes that were fit for that particular purpose. Get n' Gear was responsible for providing shoes that were fit for that particular purpose, and their failure to do so caused injury to Freddi. This breach of warranty falls under the implied warranty of fitness for a particular purpose.

Question 14

Livestock Feedlot orders one hundred sacks of cattle feed from MegaNutrient Feed, Inc. Each sack is stamped with the phrase "Twenty percent protein." This is

Accepted Answer

The phrase "Twenty percent protein" is a statement of fact and a promise that the feed contains 20% protein. This makes it an express warranty, which is a guarantee about the quality or performance of a product that is made directly by the seller.

Question 15

Grande Floors, Inc., and Home Decor Stores enter into a contract for a sale of carpeting. Grande Floors, 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. Therefore, option A is the correct answer. Option B is incorrect because implied affirmations of fact relating to the goods cannot be disclaimed or modified. Option C is incorrect because the seller cannot disclaim or modify an express warranty in any way they see fit, but only through clear, conspicuous language. Option D is incorrect because as mentioned, an express warranty can be disclaimed or modified.

Question 16

Aerospace, Inc., makes and sells flight navigation equipment, through inde?pendent salespersons, to retailers for resale to consumers. The Magnuson-Moss Warranty Act covers

Accepted Answer

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Question 17

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

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Question 18

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

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Question 19

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 statement on the label is an express warranty, as it specifically identifies the product and the quantity included. It does not imply fitness for a particular purpose, as it does not suggest that the sparkplugs are suitable for any specific use, nor does it imply merchantability, as it does not guarantee that the product is fit for its ordinary purpose.

Question 20

Marcos buys a pneumatic drill from NuTools Inc. Owen leases a table saw from Piecework Tools Sales & Lease Company. Later, Marcos and Owen become aware of defects in the goods that indicate breaches of warranty. An action for breach of warranty accrues when

Accepted Answer

An action for breach of warranty accrues when the seller or lessor tenders delivery, as this is the point at which the buyer or lessee can first evaluate the goods against the warranties provided.

Quiz 23: Warranties