Question 1

In ________, in business contracts involving the sale of goods, time of payment and delivery are considered warranties unless otherwise specified.
A) Jamaica
B) South Korea
C) Japan
D) Hong Kong
E) Thailand

Accepted Answer

The answer of In ________, in business contracts involving the...

Question 2

Business law teacher Julie was very sensitive about her upcoming 50th birthday. Her students decided to surprise her with a cake. On behalf of her class, Damon, a student, went to the bakery and ordered a cake that said "Happy Birthday - You Look Great!" The salesclerk said there would be no problem having the cake ready and that it should make the birthday girl feel great. Damon was in a big hurry when he picked up the boxed cake, and although the salesclerk asked Damon to take a look at the cake, he declined. Unfortunately, when the cake was opened in class, the icing read, "Happy Birthday - You Look Gray!" The students were mortified, and Julie stormed off angrily, vowing to give a difficult final. Which of the following is true regarding the warranties the bakery breached, if any?
A) Because the salesclerk promised that there would be no problem with the cake, the bakery breached an express warranty and is liable for damages.
B) The bakery breached the warranty of merchantability and is liable for damages.
C) Because the salesclerk promised that the cake would make the birthday girl feel great, the bakery breached the implied warranty of fitness for a particular purpose and is liable for damages.
D) Because food was involved, no warranties were made.
E) Because Damon failed to inspect the cake, he waived implied and express warranties.

Accepted Answer

The answer of Business law teacher Julie was very sensitive...

Question 3

Craig went into a hardware store to purchase a saw. He informed the salesclerk that he wanted a saw that would cut through copper tubing. The salesclerk referred Craig to a display of saws on the wall, and Craig purchased one. What kind of warranty, if any, did the salesclerk make?
A) The salesclerk made an express warranty, a warranty of trade usage, and a warranty of fitness for a particular purpose.
B) The salesclerk made a warranty of fitness for a particular purpose, but not an express warranty or a warranty of trade usage.
C) The salesclerk made an express warranty and a warranty of trade usage, but not a warranty of fitness for a particular purpose.
D) The salesclerk made an express warranty, but not a warranty of fitness for a particular purpose or a warranty of trade usage.
E) The salesclerk made a warranty of trade usage, but not a warranty of fitness for a particular purpose or an express warranty.

Accepted Answer

The salesclerk made a warranty of fitness for a particular purpose by recommending a specific saw based on Craig's stated need to cut through copper tubing, indicating that the saw would be suitable for that specific use. This does not constitute an express warranty, which would require a more explicit affirmation of fact or promise about the item, nor does it involve a warranty of trade usage, which relates to standards in the industry rather than the suitability of the product for a specific purpose.

Question 4

Perry and Tim negotiate a contract governed by the UCC. Tim wants to extend the time to make a warranty claim, so Perry and Tim agree that Tim could sue for breach any time within eight years. Tim sues for breach after six years. Can Tim make a claim?
A) Yes, because there is a 10 year statute of limitations under the UCC.
B) Yes, because the parties are free to negotiate any statute of limitations they want.
C) No, because parties to a contract are never allowed to negotiate on the statute of limitations.
D) No, because the UCC requires a lawsuit to be brought within four years and parties to a contract are not free to negotiate a longer time period than the UCC's four year limit.
E) It depends upon the contract terms.

Accepted Answer

The UCC sets a four-year statute of limitations for breach of contract claims, and parties cannot extend this period beyond four years, although they can agree to shorten it.

Question 5

A breach of ________ occurs if it is generally accepted in the trade that a certain product is always preassembled and the seller does not deliver the goods in that condition.
A) the implied warranty of merchantability
B) the implied warranty of fitness for a particular purpose
C) the implied warranty of trade usage
D) an express warranty
E) an express warranty of quality

Accepted Answer

The implied warranty of trade usage refers to the expectations and standards that are generally accepted in a particular trade or industry. If a product is expected to be preassembled according to trade usage and it is not delivered in that condition, it constitutes a breach of this warranty.

Question 6

If a buyer fails to comply with the ________, it operates as a waiver of warranty rights under the contract.
A) waiver of purchase
B) statute of limitations
C) parol evidence rule
D) damage clause
E) owner's manual

Accepted Answer

Failing to comply with the statute of limitations means that the buyer has waited too long to bring a claim, which effectively waives their warranty rights under the contract.

Question 7

Anthony went into a hardware store to purchase a saw. The salesclerk said of a particular saw, "This saw will cut through metal." Anthony purchased the saw. What kind of warranty, if any, did the salesclerk make through the statement?
A) The salesclerk made an express warranty, a warranty of trade usage, and a warranty of fitness for a particular purpose.
B) The salesclerk made a warranty of fitness for a particular purpose, but not an express warranty or a warranty of trade usage.
C) The salesclerk made an express warranty and a warranty of trade usage, but not a warranty of fitness for a particular purpose.
D) The salesclerk made an express warranty, but not a warranty of fitness for a particular purpose or a warranty of trade usage.
E) The salesclerk made a warranty of trade usage, but not a warranty of fitness for a particular purpose or an express warranty.

Accepted Answer

The salesclerk's statement, "This saw will cut through metal," directly describes the saw's capability, making it an express warranty. It does not necessarily relate to fitness for a particular purpose unless Anthony specified the purpose for which he needed the saw, nor does it relate to trade usage, which involves industry standards or customs.

Question 8

Which position have most states adopted in regard to warranty rights of third parties?
A) Seller's warranties extend to the buyer's household members and guests.
B) Seller's warranties extend to any reasonable and foreseeable user.
C) Seller's warranties extend to anyone injured by the good.
D) Seller's warranties extend to the buyer only.
E) Seller's warranties extend to the buyer and the buyer's family only.

Accepted Answer

Most states have adopted the position that seller's warranties extend to any reasonable and foreseeable user, reflecting a broader interpretation of warranty rights that goes beyond the immediate buyer to include those who might reasonably be expected to use the product.

Question 9

________ are simply exaggerations made by a salesperson and do not create a warranty.
A) Puffing
B) Falsehoods
C) Innocent misrepresentations
D) Fraudulent misrepresentations
E) Negligent misrepresentations

Accepted Answer

Puffing refers to the practice where a salesperson makes exaggerated claims about a product or service's quality or effectiveness, which are subjective and not meant to be taken as factual guarantees or warranties. These statements are generally considered opinion rather than factual representations that could be legally binding.

Question 10

How may a buyer waive implied and express warranties?
A) A buyer may waive both implied and express warranties through (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.
B) A buyer may waive an implied warranty by failing to comply with the seller's request to inspect the goods, but an express warranty may only be waived by failing to examine goods for which an express warranty was created by a sample or model.
C) A buyer may waive an express warranty by failing to comply with the seller's request to inspect the goods, but an implied warranty may only be waived by failing to examine goods for which an express warranty was created by a sample or model.
D) A buyer may waive both implied and express warranties only through signing a statement that such warranties are waived.
E) A buyer may waive implied warranties only through signing a statement that such warranties are waived, but a buyer may waive express warranties through (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.

Accepted Answer

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

Question 11

Which of the following is true about the UCC's rule on implied warranties of title?
A) The UCC assumes that the seller does not have good and valid title and requires proof of title under all circumstances.
B) The UCC prohibits buyers from recovering from sellers who have breached warranties of title.
C) There are no exceptions to title warranties under the UCC.
D) The UCC assumes sellers do not have the right to transfer title free and clear, until proved otherwise by a court.
E) The UCC assumes the seller has good and valid title to goods and the right to transfer title free and clear.

Accepted Answer

The UCC (Uniform Commercial Code) generally assumes that a seller has good and valid title to the goods being sold and the right to transfer title free and clear of any liens or encumbrances, unless stated otherwise. This is an implied warranty of title under the UCC.

Question 12

Perry and Tim negotiate a contract governed by the UCC. Perry is worried about being sued, so Perry and Tim negotiate an agreement wherein each will only have 16 months to pursue a claim for breach. Tim, claiming the UCC gives him four years to sue, files a claim after three years. Can Tim go forward with his claim?
A) Yes, because the UCC does allow him four years and parties cannot change that.
B) Yes, because the UCC allows him four years and parties can only extend the UCC statute of limitations, not shorten it.
C) No, because buyers and sellers are free to negotiate contractually a shorter time period than the UCC's four year statute of limitations.
D) No, because parties to a contract are never allowed to negotiate on the statute of limitations.
E) It depends upon the contract terms.

Accepted Answer

The Uniform Commercial Code (UCC) does allow parties to a contract to negotiate a shorter statute of limitations period than the default four years, as long as the period is not less than one year. Therefore, Perry and Tim's agreement to a 16-month period is valid, and Tim cannot pursue a claim after three years.

Question 13

Carlyn is selling a very expensive dress and tells Marion who tries it on "That dress is so gorgeous on you, all the men will be flocking to your side." Does this statement by Carlyn create an express warranty?
A) No, because oral statements by sales people never create warranties.
B) No, because it is impossible to objectively measure what is gorgeous in a dress.
C) No, because this statement is an example of puffing.
D) Yes, if Carlyn made the statement in an attempt to make the sale.
E) Yes, under all circumstances sales people are responsible for their words.

Accepted Answer

This statement by Carlyn is considered puffing, which is the practice of making exaggerated, subjective claims about a product that cannot be objectively verified. Puffing does not create an express warranty because it is based on personal opinions and not on factual, measurable promises about the product's performance or quality.

Question 14

A buyer, under the UCC, must bring a lawsuit on a breached contract within ________ of when the breach occurred or when the buyer became aware of it.
A) one month
B) three months
C) two years
D) four years
E) no specified time is required

Accepted Answer

Under the Uniform Commercial Code (UCC), a buyer must bring a lawsuit for a breach of contract within four years of when the breach occurred or when the buyer became aware of the breach.

Question 15

Tanya lives with her sister Jane and decides to help out around the house and mows the yard with the lawn mower that Jane recently purchased. While mowing the yard, the mower malfunctions and Tanya is seriously hurt. Does Tanya have a warranty claim under the UCC?
A) It depends on the state.
B) Yes, because warranties extend to the buyer's household members and guests.
C) No, only Jane has any rights since she was the buyer of the lawn mower.
D) It depends upon what is written in the lawn mower's instruction manual.
E) Seller's warranties extend to the buyer and the buyer's spouse and children only.

Accepted Answer

Warranties under the Uniform Commercial Code (UCC) extend to the buyer's household members and guests who can be reasonably expected to use, consume, or be affected by the goods. This means Tanya, as a household member using the lawn mower, would be covered under the warranty protections.

Question 16

Which is a true statement regarding a buyer's right to waive warranties?
A) A buyer may not waive warranties.
B) A buyer may waive implied warranties but not express warranties.
C) A buyer may waive express warranties but not implied warranties.
D) A buyer may waive both express warranties and implied warranties.
E) A buyer may waive express warranties and the implied warranty of fitness for a particular purpose, but not the implied warranty of merchantability.

Accepted Answer

A buyer can waive both express and implied warranties, often through specific agreement terms or by actions that indicate acceptance of goods as is. This waiver can be part of the negotiation and agreement process in a transaction.

Question 17

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?
A) The court ruled that the plaintiff could recover from the manufacturer based upon the implied warranty of merchantability.
B) The court ruled that the plaintiff could recover from the manufacturer based upon the implied warranty of fitness for a particular purpose.
C) The court ruled that the plaintiff could recover from the manufacturer based upon the theory of express warranty.
D) The court ruled that the plaintiff could recover from the manufacturer based upon the implied warranty of trade usage.
E) The court ruled that the plaintiff could not recover from the manufacturer.

Accepted Answer

The court ruled that the plaintiff could not recover from the manufacturer, indicating that the legal arguments presented by the plaintiff were not sufficient to hold the manufacturer liable for the issues with the vehicle leased from a dealership.

Question 18

Which of the following is true regarding disclaimers of the implied warranty of merchantability?
A) Any attempt to disclaim the implied warranty of merchantability is per se unconscionable, but a court will enforce the disclaimer if the buyer is another merchant and is fully informed of the disclaimer.
B) Any attempt to disclaim the implied warranty of merchantability is per se unconscionable, and a court will refuse to enforce the disclaimer.
C) Under some situations, a disclaimer of the implied warranty of merchantability may be made within 10 days after a sale.
D) A disclaimer of the implied warranty of merchantability may be done orally.
E) By federal law, there is no requirement that the term "merchantability" be used in any disclaimer.

Accepted Answer

A disclaimer of the implied warranty of merchantability can be made orally, but it must be conspicuous and specifically mention "merchantability" if in writing.

Question 19

A buyer purchases a car at a sheriff's sale of seized goods. Later, the buyer discovers that there is a lien on the car. Can the buyer recover from the seller for breaching the warranty of title?
A) Yes, because the UCC assumes that the seller has good and valid title to goods.
B) Yes, because the UCC assumes that the seller has the right to transfer title free and clear.
C) Yes, because the UCC specifically permits buyers to recover from sellers who have breached warranties of title.
D) Yes, because there are no exceptions to title warranties.
E) No, because this is an exception to the warranty of title because the seller was obviously unable to guarantee title.

Accepted Answer

The Uniform Commercial Code (UCC) provides for a warranty of title by a seller, but there are exceptions, such as sales by sheriffs, executors, or any sale under legal authority where the seller may not be able to guarantee clear title. In the case of a sheriff's sale of seized goods, it is understood that the seller (in this case, the sheriff or the legal authority conducting the sale) may not be able to provide a warranty of clear title, making this an exception to the general rule.

Question 20

Greenwald's PopWorld purchases 2,000 bottles of GreenSlime soda pop from Green Mountain Pop Distribution Company. It is customary in the soda pop industry that soda pop comes in cartons of 8 soda pops per carton. Green Mountain delivers the bottles on crates wrapped up but not in cartons. Was any warranty breached?
A) No, there was no indication that the buyer wanted the product in cartons.
B) No, there is no such implied warranty of fitness for a particular purpose.
C) Yes, the implied warranty of trade usage.
D) Yes, the express warranty of soda cartons for quality and delivery.
E) Yes, the implied warranty of quality.

Accepted Answer

The implied warranty of trade usage was breached because it is customary in the soda pop industry for soda pop to come in cartons of 8 soda pops per carton, and this customary practice was not followed.

Quiz 25: Warranties

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

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

Perry and Tim negotiate a contract governed by the UCC. Tim wants to extend the time to make a warranty claim, so Perry and Tim agree that Tim could sue for breach any time within eight years. Tim sues for breach after six years. Can Tim make a claim?

A breach of ________ occurs if it is generally accepted in the trade that a certain product is always preassembled and the seller does not deliver the goods in that condition.

If a buyer fails to comply with the ________, it operates as a waiver of warranty rights under the contract.

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

Which position have most states adopted in regard to warranty rights of third parties?

________ are simply exaggerations made by a salesperson and do not create a warranty.

How may a buyer waive implied and express warranties?

Which of the following is true about the UCC's rule on implied warranties of title?

Carlyn is selling a very expensive dress and tells Marion who tries it on "That dress is so gorgeous on you, all the men will be flocking to your side." Does this statement by Carlyn create an express warranty?

A buyer, under the UCC, must bring a lawsuit on a breached contract within ________ of when the breach occurred or when the buyer became aware of it.

Tanya lives with her sister Jane and decides to help out around the house and mows the yard with the lawn mower that Jane recently purchased. While mowing the yard, the mower malfunctions and Tanya is seriously hurt. Does Tanya have a warranty claim under the UCC?

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

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?

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

A buyer purchases a car at a sheriff's sale of seized goods. Later, the buyer discovers that there is a lien on the car. Can the buyer recover from the seller for breaching the warranty of title?