Question 1

Which of the following is true of a warranty of merchantability?

Accepted Answer

The warranty of merchantability ensures that goods are fit for the ordinary purposes for which such goods are used, which relates to the fitness of the product.

Question 2

The statement of the seller in which the article sold is warranted or guaranteed is known as an . ​

Accepted Answer

An express warranty is a statement by the seller regarding the quality, capacity, or other characteristics of the goods that forms part of the basis of the bargain.

Question 3

An express warranty applies even if defects are actually known to the buyer, or defects are so apparent that no special skill or ability is required to detect them.

Accepted Answer

An express warranty is a seller's promise or guarantee that a buyer relies on when they purchase an item. It applies regardless of whether the buyer knows about specific defects, but it does not cover defects that are apparent or should have been obvious to the buyer at the time of purchase.

Question 4

Which of the following is true of sale of food or drink?

Accepted Answer

The sale of food or drink carries an implied warranty that the food is fit for consumption, ensuring that the food sold is safe and suitable for human consumption without the need for an express warranty to be provided by the seller.

Question 5

The requires creditors to notify a potential recipient of credit whenever any adverse action or denial of credit was based on a credit report.

Accepted Answer

The Fair Credit Reporting Act (FCRA) mandates that creditors must inform applicants if a decision (such as denial of credit) was made based on information obtained from a credit report. This includes providing the name of the credit reporting agency that supplied the report.

Question 6

The statement of the seller in which the article sold is warranted or guaranteed is known as an implied warranty.

Accepted Answer

An implied warranty is a legal term for the assurances that are unwritten and unspoken that the product is fit for the purpose for which it was sold, but it is not explicitly stated by the seller.

Question 7

Jack, a second-hand dealer of cars, provides his clients with the opportunity to examine them. Jenny test-drove a car and got it checked by her mechanic as well. However, the mechanic missed a broken valve and the car broke down after the purchase. Which of the following is likely to happen in this scenario?

Accepted Answer

Jack is exempt from prosecution under the principle of caveat emptor, which means "let the buyer beware." Since Jenny had the opportunity to examine the car and even had it checked by her mechanic, Jack is not liable for the missed fault.

Question 8

A seller's warranty that the goods shall be delivered free from any security interest or any other lien of which the buyer at the time of making the sales contract had no knowledge is known as a .

Accepted Answer

This warranty ensures that the goods are delivered without any undisclosed security interests or liens, protecting the buyer from unexpected claims against the goods.

Question 9

Implied warranty arises as to fitness of used property for ordinary use from a sale made by a casual seller.

Accepted Answer

Implied warranties typically apply to new goods and are less likely to apply to used goods, especially when sold by a casual seller, as the expectations for quality and fitness for a particular purpose are not as strongly presumed.

Question 10

​ Explain product uniformity.

Accepted Answer

The answer of ​ Explain product uniformity....

Question 11

Which of the following warranties applies to all sellers?

Accepted Answer

The warranty of title is a basic warranty that applies to all sellers, ensuring that the seller has the right to sell the property and that it is free from any undisclosed security interests or liens.

Question 12

A small piece of molded plastic shown to a car buyer to illustrate the materials and methods used in the construction of cars creates a sale by sample.

Accepted Answer

A sale by sample involves a transaction where the actual goods are not present during the sale, but a sample is shown to represent the quality and characteristics of the goods being sold. Showing a piece of molded plastic to illustrate materials and methods does not constitute a sale by sample, as it is more about demonstrating the manufacturing process or material quality rather than representing the actual goods being sold.

Question 13

The warranty against encumbrances applies to the goods only at the time they are delivered to the buyer; it is not concerned with an encumbrance that existed before the sale was made.

Accepted Answer

The warranty against encumbrances only applies to the goods at the time of delivery, not to any encumbrances that existed before the sale.

Question 14

Under the Fair Credit Reporting Act, certain types of adverse information may not be maintained in a consumer's credit report for more than seven years.

Accepted Answer

The Fair Credit Reporting Act (FCRA) stipulates that most types of adverse information, such as late payments, foreclosures, and bankruptcies, must be removed from a consumer's credit report after seven years, with certain exceptions like Chapter 7 bankruptcy, which can stay for up to 10 years.

Question 15

is information that the law presumes everyone knows by virtue of the fact that it is filed or recorded on the public record.

Accepted Answer

Constructive notice is the legal concept that information is assumed to be known by someone because it has been made available through public records.

Question 16

A(n)is one that the seller did not make but that is imposed by the law.

Accepted Answer

An implied warranty is a legal term for the assurances that a product is fit for its intended purpose and that it meets certain quality standards, even if these assurances are not explicitly stated by the seller. This type of warranty is automatically imposed by law to protect consumers.

Question 17

The Truth in Lending Act (TILA)was enacted to set safety standards for consumer products.

Accepted Answer

The Truth in Lending Act (TILA) was enacted to promote the informed use of consumer credit by requiring disclosures about its terms and cost.

Question 18

The sale of food or drink, to be consumed off the seller's premises, is not a sale.

Accepted Answer

The sale of food or drink to be consumed off the seller's premises is still considered a sale, as it involves the transfer of goods (food or drink) from the seller to the buyer in exchange for payment.

Question 19

A warranty is an assurance that the article sold will conform to a certain standard or will operate in a certain manner. ​

Accepted Answer

A warranty is indeed an assurance provided by the seller that the product will meet certain quality and performance standards, or operate in a specified manner.

Question 20

Unless otherwise agreed, a merchant warrants that goods shall be delivered free of the rightful claim of any third person by way of patent or trademark infringement.

Accepted Answer

Under the Uniform Commercial Code (UCC), there is an implied warranty that the goods will be delivered free of any rightful claim of infringement of patents, trademarks, or copyright by third persons, unless the seller and buyer agree otherwise.

Quiz 19: Warranties Product Liability and Consumer Protection

Which of the following is true of a warranty of merchantability?

The statement of the seller in which the article sold is warranted or guaranteed is known as an .

An express warranty applies even if defects are actually known to the buyer, or defects are so apparent that no special skill or ability is required to detect them.

Which of the following is true of sale of food or drink?

The requires creditors to notify a potential recipient of credit whenever any adverse action or denial of credit was based on a credit report.

The statement of the seller in which the article sold is warranted or guaranteed is known as an implied warranty.

A seller's warranty that the goods shall be delivered free from any security interest or any other lien of which the buyer at the time of making the sales contract had no knowledge is known as a .

Implied warranty arises as to fitness of used property for ordinary use from a sale made by a casual seller.

Explain product uniformity.

Which of the following warranties applies to all sellers?

A small piece of molded plastic shown to a car buyer to illustrate the materials and methods used in the construction of cars creates a sale by sample.

The warranty against encumbrances applies to the goods only at the time they are delivered to the buyer; it is not concerned with an encumbrance that existed before the sale was made.

Under the Fair Credit Reporting Act, certain types of adverse information may not be maintained in a consumer's credit report for more than seven years.

is information that the law presumes everyone knows by virtue of the fact that it is filed or recorded on the public record.

A(n) is one that the seller did not make but that is imposed by the law.

The Truth in Lending Act (TILA)was enacted to set safety standards for consumer products.

The sale of food or drink, to be consumed off the seller's premises, is not a sale.

A warranty is an assurance that the article sold will conform to a certain standard or will operate in a certain manner.

Unless otherwise agreed, a merchant warrants that goods shall be delivered free of the rightful claim of any third person by way of patent or trademark infringement.

Quiz 19: Warranties Product Liability and Consumer Protection

Which of the following is true of a warranty of merchantability?

The statement of the seller in which the article sold is warranted or guaranteed is known as an . ​

An express warranty applies even if defects are actually known to the buyer, or defects are so apparent that no special skill or ability is required to detect them.

Which of the following is true of sale of food or drink?

The requires creditors to notify a potential recipient of credit whenever any adverse action or denial of credit was based on a credit report.

The statement of the seller in which the article sold is warranted or guaranteed is known as an implied warranty.

A seller's warranty that the goods shall be delivered free from any security interest or any other lien of which the buyer at the time of making the sales contract had no knowledge is known as a .

Implied warranty arises as to fitness of used property for ordinary use from a sale made by a casual seller.

​ Explain product uniformity.

Which of the following warranties applies to all sellers?

A small piece of molded plastic shown to a car buyer to illustrate the materials and methods used in the construction of cars creates a sale by sample.

The warranty against encumbrances applies to the goods only at the time they are delivered to the buyer; it is not concerned with an encumbrance that existed before the sale was made.

Under the Fair Credit Reporting Act, certain types of adverse information may not be maintained in a consumer's credit report for more than seven years.

is information that the law presumes everyone knows by virtue of the fact that it is filed or recorded on the public record.

A(n) is one that the seller did not make but that is imposed by the law.

The Truth in Lending Act (TILA)was enacted to set safety standards for consumer products.

The sale of food or drink, to be consumed off the seller's premises, is not a sale.

A warranty is an assurance that the article sold will conform to a certain standard or will operate in a certain manner. ​

Unless otherwise agreed, a merchant warrants that goods shall be delivered free of the rightful claim of any third person by way of patent or trademark infringement.

The statement of the seller in which the article sold is warranted or guaranteed is known as an .

Explain product uniformity.

A warranty is an assurance that the article sold will conform to a certain standard or will operate in a certain manner.