Question 1

An express warranty can be created by which of the following?

Accepted Answer

An express warranty can be created by any of the three types mentioned - an affirmation of fact or promise, a description, or a model. Therefore, choice D is the correct answer.

Question 2

Bugs R Us,an organic gardening merchant,sells and delivers 100 units of live lady bugs to eat the bad bugs on the buyer's award-winning vegetables.The buyer ordered the lady bugs without consultation with Bugs R Us for suggestions.Although the buyer correctly knew that lady bugs were the appropriate bugs for eating bad bugs on vegetables,when the lady bugs were delivered,they refused to eat the bad bugs.The merchant has breached which warranty?

Accepted Answer

The answer of Bugs R Us,an organic gardening merchant,sells and...

Question 3

Which of the following warranties provides that the goods will be useable for the ordinary purposes for which they are used?

Accepted Answer

Merchantability warranty provides that the goods will be useable for the ordinary purposes for which they are used.

Question 4

The economic loss doctrine states that,when the injured party is a corporation and the harm is purely economic,the only remedies available are those under the common law.

Accepted Answer

The economic loss doctrine, in general, restricts recovery for economic losses that are not accompanied by physical harm or injury, but it varies by jurisdiction. In some jurisdictions, the doctrine only applies to products liability cases, while in others, it may not apply at all. Additionally, corporations are not the only parties affected by the economic loss doctrine, as it may also apply to individuals and businesses. Moreover, the availability of remedies beyond common law for economic losses may depend on the specific circumstances and applicable laws in a given case.

Question 5

When Angelena was shopping for a new lawn mower,the salesman,Mark,told her the model she was interested in cuts an 18" swath and the only maintenance it needs is an oil change and a new sparkplug at the beginning of each mowing season.He hands her a warranty booklet which describes that model as a mulching mower and says it has a five-year full warranty.The booklet also disclaims "any warranties or statements made by any agent or salesperson or that appear elsewhere in this booklet." The effect of the written disclaimer is:

Accepted Answer

The answer of When Angelena was shopping for a new...

Question 6

In a breach of warranty case,the buyer must:

Accepted Answer

In a breach of warranty case, the buyer must notify the seller of defects within a reasonable time. This is known as the "notice requirement." The exact time frame may vary depending on the circumstances, but generally, the buyer should notify the seller as soon as possible after discovering the defect. Failure to give notice in a timely manner may result in the buyer losing the right to sue for breach of warranty. The other options given are not entirely accurate. While there may be a statute of limitations on bringing suit, it will depend on the particular jurisdiction and type of case. Similarly, while a written agreement to extend the statute of limitations may be enforceable, it is not necessarily required. And a six-month notice requirement is not a universal rule.

Question 7

A sales representative at Oxtren,Inc orally told the purchasing agent at Wety,Inc.that its industrial saw is exceptional.Which statement is correct concerning the claim that the saw is exceptional?

Accepted Answer

The statement "the saw is exceptional" is considered sales puffery, which is a form of exaggerated or opinion-based advertising that does not create a warranty. Therefore, it is not considered an express or implied warranty.

Question 8

Under which of the following warranties must the seller be a merchant?

Accepted Answer

The implied warranty of merchantability requires that the seller be a merchant. This means that the seller must regularly sell goods of that kind in order for the warranty to apply. The other warranties do not have the same requirement. Express warranties can be made by anyone, regardless of whether they are a merchant or not. The implied warranty of fitness for a particular purpose only requires that the buyer rely on the seller's expertise and advice, not that the seller be a merchant.

Question 9

Ned sold his refrigerator to his next door neighbor,Ian.Ned fails to tell Ian he has not finished paying for the refrigerator and Neighborhood Bank has a lien on it.

Accepted Answer

Ned has breached the warranty of title by selling the refrigerator without informing Ian about the lien held by Neighborhood Bank. The warranty of title guarantees that the seller has good and clear title to the goods being sold and has the right to transfer ownership to the buyer. Ned's failure to disclose the lien means that he did not have clear title to the refrigerator and has therefore breached this warranty.

Question 10

Crytrin Manufacturing,Inc.contracted with Molfrey,Inc.to manufacture three large pieces of equipment.The contract contained a clause stating that Crytrin agreed to repair or replace any defective equipment,but that was the only remedy Molfry would have.This clause:

Accepted Answer

The clause is a limitation of remedy clause that limits or excludes normal remedies permitted under the Code. It restricts the remedy available to Molfry to repair or replacement of any defective equipment, and does not allow for any other forms of compensation, such as consequential damages.

Question 11

Van is using his wrench as a hammer when the wrench breaks and a piece flies off,injuring his neighbor who is helping Van change a tire on Van's car.If Van sues the tool manufacturer,its best defense will be:

Accepted Answer

The best defense the tool manufacturer would have in this situation is product misuse. Van was using the tool as a hammer, which is not its intended use, and therefore the manufacturer would argue that they cannot be held liable for any injuries or damages resulting from this type of misuse.

Question 12

Lemon laws,which assist consumers who have purchased automobiles that turn out to be "lemons,":

Accepted Answer

Lemon laws are enacted by state legislatures, and each state has its own respective lemon law.

Question 13

Which of the following is not guaranteed under an implied warranty?

Accepted Answer

An implied warranty does not guarantee that goods may be returned for a refund or replaced in the event of any defect. This type of guarantee is typically provided under a manufacturer's or seller's express warranty. The other choices are typically covered under an implied warranty, which is automatically attached to every sale of goods unless explicitly disclaimed by the seller.

Question 14

Which of the following statements could create an express warranty?

Accepted Answer

Statement C provides a specific factual claim about the tires, which could be seen as a promise or guarantee of their quality and expected longevity. The other statements are more subjective opinions or speculative statements that would not likely be interpreted as express warranties.

Question 15

Tu-thumbs buys a used paint sprayer from the local paint store.The sprayer had a large sign on it which said "ASIS." The dealer made no promises or statements concerning the performance of the paint sprayer.When Tu-thumbs attempts to spray paint his house,the trigger on the sprayer sticks in the "on" position and before Tu-thumbs can pull the electrical cord to cut the power,paint is sprayed all over his prize Borzoi dog that is scheduled to be shown in a dog show the next day.Tu-thumbs sues the dealership.Who wins?

Accepted Answer

The answer of Tu-thumbs buys a used paint sprayer from...

Question 16

A sales representative at Oxtren,Inc.orally told the purchasing agent at Wety,Inc.that its industrial saw will cut through metal up to 5 inches thick.Wety purchased the saw.Which statement is correct concerning the claim that the saw can cut through metal up to five inches thick?

Accepted Answer

The salesman's statement constitutes an express warranty because it was a specific representation about the product's capabilities that influenced the buyer's decision to purchase. It is not sales puffery, which is vague or exaggerated language used to promote a product, nor is it an implied warranty of merchantability, which arises automatically by law and guarantees that a product is fit for its intended purpose and is of at least average quality. Although written warranties are often used to provide additional protection for consumers, they are not required for a statement to be considered a warranty.

Question 17

Bill is injured while standing on the corner of Hollyhock and Vine when Mia's new Hog speeds out of control because of a defective part.In most jurisdictions,Bill:

Accepted Answer

In most jurisdictions, Bill can sue the motorcycle manufacturer even though he does not have privity of contract because the manufacturer owes a duty of care to all potential users of its product, regardless of whether they purchased the product directly.

Question 18

Daddy buys an electric car for his 10-year-old son.Daddy follows the directions for assembly carefully,but the son gets an injuring shock when he sits in the car.If Daddy and son sue the manufacturer for negligence,they will:

Accepted Answer

In a product liability case, the plaintiff must prove that the manufacturer failed to use reasonable care in designing, manufacturing, or warning the purchasers about intended uses and foreseeable misuses. The lack of privity of contract between the manufacturer and a third party does not prevent a product liability claim. However, if the car was sold "AS IS," it may limit the plaintiff's ability to recover damages. Therefore, option B is the best choice.

Question 19

Mason bought a rotisserie in preparation for a party he was planning.When he put a chicken on the rotisserie,it would not rotate,but stayed in one position where it burned the chicken on one side and left it raw on the other.When he returned the rotisserie to the store,the salesperson disclaimed any responsibility because he had never told Mason the rotisserie would rotate the food as it cooked.Does Mason have any recourse?

Accepted Answer

The best choice is D because even though the salesperson did not make any express warranties, under the Uniform Commercial Code (UCC), there is an implied warranty of merchantability. This means that the rotisserie is guaranteed to be fit for the ordinary purposes for which it is used, and since it did not function properly, Mason can return it or seek damages.

Question 20

The statute of limitations for breach of warranty under the UCC is?

Accepted Answer

The statute of limitations for breach of warranty under the Uniform Commercial Code (UCC) is four years.

Quiz 20: Ownership and Warranties