Question 1

Molly goes to the store and buys a toaster that shocks her when she plugs it into the outlet. She returns it to the store and was told that the seller provided no warranties and that she would have to return it to the overseas manufacturer even if the postage to return it to the manufacturer would amount to more than the toaster is worth. Molly believes that is ridiculous. Who is correct under the UCC and why?

Accepted Answer

When a good is purchased from a merchant, the article is covered by the warranty of merchantability.

Question 2

Which is true regarding a buyer's right to waive warranties?

Accepted Answer

The buyer may waive both implied and express warranties.

Question 3

Which of the following is true regarding disclaimers of the implied warranty of merchantability?

Accepted Answer

The seller may disclaim the warranty of merchantability either orally or in writing; however, some states require that the term merchantability must be used in the disclaimer.

Question 4

Which of the following is false regarding express warranties?

Accepted Answer

An express warranty may arise from a salesperson's oral promise concerning a good, made, for example, while attempting to close a deal.

Question 5

How may a buyer waive implied and express warranties?

Accepted Answer

The buyer may waive both implied and express warranties. A buyer may waive these rights by (1) failing to examine goods for which an express warranty was created by a sample or model or (2) failing to comply with the seller's request to inspect the goods.

Question 6

Jack went into a hardware store to purchase a saw; and as to a particular saw, the salesclerk said, "This saw will cut through metal." Jack purchased the saw. What kind of warranty, if any, did the salesclerk make through the statement?

Accepted Answer

If the buyer walks into a store and the salesclerk says, "This saw will cut through metal," the seller has created an express warranty.

Question 7

Which of the following best expresses the court's opinion in the case nugget Jackson v. Bumble Bee Seafoods Inc.Jackson v. Bumble Bee Seafoods Inc., in which the plaintiff sued after small fish bones were found in canned tuna fish the plaintiff ate?

Accepted Answer

Relying on the earlier Blue Ship Tea Room case, the court ruled that the bones should have been expected in the fish and that there was no warranty of merchantability.

Question 8

A salespersons' exaggerations that would not be classified as a warranty are known as ______.

Accepted Answer

Statements of opinion are often salespersons' exaggerations and are known as "puffing."

Question 9

What Western law refers to as a warranty is called a[n] _____ in Kazakhstan.

Accepted Answer

What Western law refers to as a warranty is called a pledge in Kazakhstan.

Question 10

Which of the following is false regarding what is necessary in order for goods to be merchantable?

Accepted Answer

Under the UCC, the goods must be merchantable, meaning that they must:1. Be able to pass without objection in the trade or market for similar goods.2. In the case of fungible goods, be of fair or average quality within the description.3. Be fit for the ordinary purposes for which such goods are used.4. Be produced, within the variations permitted by the agreement, of even kind, quality, and quantity within each unit and among all units involved.5. Be adequately contained, packaged, and labeled as the agreement may require.6. Conform to the promises or affirmations made on the container or label, if any.

Question 11

Jack went into a hardware store to purchase a saw. He told the salesclerk that he wanted a saw that would cut through copper tubing. The salesclerk referred Jack to a wall of saws, and Jack purchased one. What kind of warranty, if any, did the salesclerk make?

Accepted Answer

If a buyer comes into a store and asks the salesclerk for a saw to cut through some copper tubing and the salesclerk refers the customer to a wall of different saws, it is reasonable for the buyer to assume that all the saws on the wall will satisfy the particular purpose that the buyer has indicated. Thus, an implied warranty of fitness for a particular purpose has been created.

Question 12

If it is generally accepted in the trade that a certain product is always preassembled, the failure of the seller to deliver the goods in that condition would be a breach of the ____.

Accepted Answer

If it is generally accepted in the trade that a certain product is always provided in a certain way, the failure of the seller to deliver the goods in that condition would be a breach of the implied warranty of trade usage.

Question 13

Which of the following is needed in order for the implied warranty of merchantability to be applied?

Accepted Answer

To invoke the implied warranty of merchantability, the purchaser must have purchased or leased the good from a merchant.

Question 14

Which of the following options have most states adopted in regard to warranty rights of third parties?

Accepted Answer

In regard to warranty rights of third parties, most states have adopted the position that seller's warranties extend to any reasonable and foreseeable user.

Question 15

Unless otherwise specified, which of the following is true regarding warranties in Hong Kong?

Accepted Answer

In Hong Kong with business contracts involving the sale of goods, time of payment and delivery are considered warranties unless otherwise specified.

Question 16

Which of the following was the result in Melissa Kahn v. Volkswagen of America Inc., the case in the text in which the plaintiff attempted to hold the manufacturer liable for problems with a vehicle she leased from a dealership?

Accepted Answer

The court ruled that the plaintiff could not recover from the manufacturer because, to her, the manufacturer was not the seller and also that her lack of privity with the manufacturer barred recovery.

Question 17

What is the effect of a failure to comply with the statute of limitations?

Accepted Answer

A buyer may waive warranty rights under the contract by failing to comply with the statute of limitations.

Question 18

Which of the following was the result in the case of Webster v. Blue Ship Tea Room Inc., the case in which the plaintiff sued after getting a bone caught in her throat while eating fish chowder?

Accepted Answer

In ruling against the plaintiff, the court stated "We are aware of the heavy body of case law involving foreign substances in food, but we sense a strong distinction between them and those relative to unwholesomeness of the food itself, e.g., tainted mackerel . . . and a fish bone in a fish chowder," and "We should be prepared to cope with the hazards of fish bones, the occasional presence of which in chowders is, it seems to us, to be anticipated, and which, in the light of a hallowed tradition, do not impair their fitness or merchantability."

Question 19

Which of the following is true regarding the implied warranty of fitness for a particular purpose?

Accepted Answer

This warranty comes about when a seller or lessor knows or has reason to know (1) why the buyer or lessee is purchasing or leasing the goods in question and (2) that the buyer or lessee is relying on him or her to make the selection. Under this warranty, the seller or lessor does not have to be a merchant.

Question 20

Business law teacher Penny is very sensitive about her upcoming 40^th birthday. Her students decide to surprise her with a cake. On behalf of her class, Brent, a student, goes to the bakery and orders a cake that says "Happy Birthday - You Look Great!" The salesclerk said that there was no problem in having the cake ready and that it should make the birthday girl feel great. Brent was in a big hurry when he went to pick up the boxed cake. Although the salesclerk asked Brent to take a look at the cake, he declined. Unfortunately, when the cake was opened up in class, the icing said "Happy Birthday - You Look Gray!" The students were mortified, and Penny angrily left the room vowing to give a difficult final. Which of the following is true regarding what warranties the bakery breached, if any?

Accepted Answer

A buyer may waive express and implied warranties by (1) failing to examine goods for which an express warranty was created by a sample or model or (2) failing to comply with the seller's request to inspect the goods.

Quiz 25: Warranties