Question 1

Musical,Inc.,sells fifty MP3 players to Noise Stores,Inc.To avoid liability for most implied warranties,in some states Musical could simply state in writing that the players are sold

Accepted Answer

By stating that the players are sold "as is", Musical Inc. is indicating that they are not making any warranties about the product's condition, and will not be responsible for any defects or problems that arise after the sale. This language can help protect Musical from liability for implied warranties, which can be created even if the seller does not explicitly state that the product is being sold with certain guarantees or promises.

Question 2

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

Accepted Answer

An express warranty is created when the seller makes a promise or affirmation of fact about the product that becomes part of the basis of the bargain. In this case, if Terrific Cars & Trucks, Inc. makes a promise to Sari about the SUV, and Sari relies on that promise in deciding to purchase the SUV, then an express warranty is created. Therefore, D is the correct answer.

Question 3

Imported Carpets Store and Jill enter into a contract for a sale of an Oriental rug.Imported Carpets,a merchant who deals in goods of the kind sold,generally describes the goods,details technical specifications,and shows a sample.Under the UCC,if these are inconsistent

Accepted Answer

Under the UCC, if there is a conflict between the general description and the sample, the sample takes precedence over the general description.

Question 4

Neil goes to Oil Shop to change the oil in his car.Perry,the service technician,learns that Neil plans to take a trip and advises the use of a certain type of oil.The oil breaks down during the trip,damaging the car.Neil may recover from Oil Shop for breach of

Accepted Answer

Perry, the service technician, advised Neil on a certain type of oil to use for his trip, which implies that there was an implied warranty of fitness for a particular purpose. The oil failed to serve its intended purpose of lasting for the duration of the trip and caused damage to Neil's car. Therefore, Neil can recover from Oil Shop for breach of an implied warranty of fitness for a particular purpose.

Question 5

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 6

Oceanic Vessels,Inc.,and Pacific Harbor Company enter into a contract for a sale of a boat.Oceanic 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

Under the UCC, the implied warranty of merchantability is breached regardless of what Oceanic knew or could have discovered about the defect. As a merchant dealing in goods of the kind sold, Oceanic is expected to provide goods that are fit for their ordinary purpose.

Question 7

Regional Lumber Company and Superior Builders Corporation enter into a contract for a sale of wood products.Regional,a merchant who deals in goods of the kind sold,makes implied and express warranties in connection with the sale.Under the UCC,if these are inconsistent

Accepted Answer

The answer of Regional Lumber Company and Superior Builders Corporation...

Question 8

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 9

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 where the seller is a merchant who deals in goods of the kind sold, and the goods must be fit for the ordinary purpose for which such goods are used. The buyer does not need to ask for it, and the seller cannot disclaim it. Lease contracts are not relevant in this scenario.

Question 10

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

Accepted Answer

In a product liability suit based on negligence, the manufacturer can be liable for violating its duty of care in both the design and the making of the product. Ceramic Tile Company designs and makes floor tiles, therefore, they could be liable for violating their duty of care in both the design and the making of the tiles.

Question 11

Fact Pattern 17-1 (Questions 17-18 apply)
Bret, a representative of Concrete Products, Inc. assures Dependable Construction Company (DCC) that Concrete's cement will not crack within a certain range of temperatures. DCC uses the product. When cracks develop within the stated temperature range, DCC files a suit against Concrete.
-Refer to Fact Pattern 17-1.Suppose that the court rules against Concrete.The manufacturer might have avoided that result by

Accepted Answer

By not permitting Bret to make an express warranty, Concrete could have avoided liability for the assurance that the cement would not crack within a certain temperature range. An express warranty creates a guarantee that the product will meet certain standards, and if it fails to do so, the manufacturer can be held liable.

Question 12

Universal Assembly Company makes espresso machines and sells one to Vim through a misrepresentation on the label on which Vim relies and that results in an injury to Vim.Universal is most likely liable for

Accepted Answer

Universal Assembly Company made a misrepresentation on the label, which means they intentionally provided false information to Vim. This is a fraudulent activity, and therefore Universal is liable for fraud.

Question 13

Forest & Field Company makes and leases a backhoe to Zach.Due to a defect attributable to Forest & Field's negligence,Zach is injured in an accident in which his neighbor Aron is also hurt.In a product liability suit based on negligence,Forest & Field may be liable to

Accepted Answer

Forest & Field may be liable for the injury and damages suffered by both Zach and Aron as a result of the defective backhoe that was negligently produced and leased by the company. As such, both Zach and Aron could bring a product liability lawsuit against the company for their damages and injuries resulting from the accident.

Question 14

Dependable Appliances,Inc.,and Elain 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 imposes an implied warranty of merchantability on merchants who deal in goods of the kind sold, which means that the goods are fit for the ordinary purpose for which such goods are used. Choice A is referring to the warranty of fitness for a particular purpose, which is a separate warranty that can be provided if the seller knows the particular purpose for which the buyer intends to use the goods and the buyer relies on the seller's expertise. Choice C is not related to the warranty of merchantability, and choice D is an exaggeration as the implied warranty of merchantability does not require the best quality possible.

Question 15

Fact Pattern 17-1 (Questions 17-18 apply)
Bret, a representative of Concrete Products, Inc. assures Dependable Construction Company (DCC) that Concrete's cement will not crack within a certain range of temperatures. DCC uses the product. When cracks develop within the stated temperature range, DCC files a suit against Concrete.
-Refer to Fact Pattern 17-1.The court is most likely to rule in favor of

Accepted Answer

Bret's statement can be considered an express warranty, which is a promise made by a seller regarding the quality or performance of a product. If the product does not meet the promise, the buyer can seek legal recourse. Therefore, the court is likely to rule in favor of DCC. Choices A and B are incorrect because they do not consider the legal concept of express warranty. Choice D is incorrect because there is no information in the fact pattern to suggest that Concrete's product is inherently unfit for its purpose.

Question 16

Regal Autos,Inc.,sells cars to consumers.To avoid liability for oral express 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 17

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

The Magnuson-Moss Warranty Act requires companies to provide consumers with a choice between a refund or replacement if a product cannot be fixed, as well as repair or replacement of defective parts. ValuRich sells products under "full" warranties, so they must follow these guidelines.

Question 18

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 is responsible for ensuring that their product is designed and manufactured safely. By failing to exercise "due care," they acted negligently and are therefore liable for Hugh's injury. The other options do not apply, as assumption of risk implies that Hugh knowingly accepted the danger inherent in skating, knowledgeable use suggests that Hugh was aware of how to properly use the skates, and product misuse would only apply if Hugh had used the skates in an unintended manner.

Question 19

Sweet Candy,Inc.,and Tasty Treats Stores enter into a contract for a sale of candy.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 disclaimer or modification must be noticeable and noticeable to the buyer.

Question 20

Farm Equip,Inc.,makes farming machinery.Gail discovers that her Farm Equip tractor is defective and sues the maker for product liability based on negligence.To win,Gail must show that

Accepted Answer

To win a product liability case based on negligence, the plaintiff (in this case, Gail) must prove that they suffered an injury caused by the defect in the product. The other options listed are not necessary to prove negligence.

Quiz 17: Warranties and Product Liability