Question 1

An action for breach of warranty accrues when the seller or lessor tenders delivery.​

Accepted Answer

According to the Uniform Commercial Code (UCC), an action for breach of warranty accrues at the time of delivery or tender of delivery. This means that if a seller or lessor breaches a warranty, the time for the buyer or lessee to take legal action starts at the moment of delivery or tender of delivery.

Question 2

A seller is not required to give a written warranty for consumer goods sold.​

Accepted Answer

While some sellers may choose to provide a written warranty, they are not required to do so by law. However, certain types of goods such as automobiles and appliances may come with manufacturer's warranties or implied warranties that provide certain protections for consumers.

Question 3

General descriptions take precedence over inconsistent samples.​

Accepted Answer

Inconsistent samples often indicate exceptions or errors that need to be addressed, rather than being overridden by general descriptions.

Question 4

A product is unmerchantable if an accident could arise in connection with the goods.​

Accepted Answer

A product being unmerchantable typically means it fails to meet the quality and performance standards expected for goods of its kind, not necessarily that an accident could arise from its use.

Question 5

If warranties are inconsistent, implied warranties displace express warranties.​

Accepted Answer

Express warranties take precedence over implied warranties unless the implied warranties are based on the deal or course of performance, in which case they can coexist and be construed as consistent with the express warranties.

Question 6

Game Source Stores are open to consumers. The UCC requirement of good faith imposes​
A) ​a higher duty on consumers than Game Source.
B) ​a higher duty on Game Source than on consumers.
C) ​no duty on either Game Source or consumers.
D) ​the same duty on Game Source and consumers.

Accepted Answer

The UCC requirement of good faith imposes a higher duty on Game Source than on consumers. This means that Game Source has a duty to act honestly and fairly in its dealings with consumers, while consumers have a lesser duty to act in good faith. As a seller, Game Source is held to a higher standard of conduct than the buyer.

Question 7

A seller or lessor can disclaim all oral express warranties by including in the contract a written disclaimer.​

Accepted Answer

A seller or lessor can disclaim all oral express warranties by including in the contract a written disclaimer.

Question 8

Pine Mills Inc. and Quality Lumber Company enter into a contract for a sale of plywood to be delivered under a destination contract. This contract requires Pine Mills, the seller, to​
A) ​allow the buyer to reject the goods for any reason.
B) ​deliver the goods to a particular destination.
C) ​inspect the goods before tendering their delivery.
D) ​place the goods into the hands of a carrier.

Accepted Answer

A destination contract requires the seller to deliver the goods to a particular destination, which is the primary obligation of the seller. It is different from a shipment contract where the seller's obligation is to place the goods into the hands of a carrier for transportation to the buyer's destination. The buyer may still have the right to reject the goods for certain reasons, but it is not the seller's primary obligation under a destination contract. The seller may or may not need to inspect the goods before delivery, depending on the terms of the contract.

Question 9

Puffery is an expert's opinion that creates an express warranty.​

Accepted Answer

Puffery is a promotional statement or exaggeration that is not meant to be taken literally or as a guarantee of performance. It is not considered an express warranty because it cannot be objectively verified or quantified.

Question 10

Fuel Connector Products, Inc., agrees to sell Go-Flo, Inc., a certain quantity of hose couplings and fittings, but the contract does not specify a place of delivery. Go-Flo is expected to pick up the goods. The place of delivery is​
A) ​Fuel Connector's place of business.
B) ​Go-Flo's place of business.
C) ​the current location of the hose couplings and fittings.
D) ​the U.S. Postal Service office nearest to Go-Flo's place of business.

Accepted Answer

Since the contract does not specify a place of delivery, the default rule is that delivery is at the seller's place of business. Therefore, the place of delivery is Fuel Connector's place of business.

Question 11

Merchants are absolute insurers against all accidents arising in connection with the goods.​

Accepted Answer

Merchants are not absolute insurers against all accidents arising in connection with the goods. They are only responsible for damages or loss caused due to their own negligence or failure to exercise reasonable care in the handling of the goods. The liability of merchants can also be limited by certain conditions and clauses in the contract of carriage or sale.

Question 12

Elegant Carpets, Inc., and Fantastic Floors Stores enter into a contract for a sale of carpeting to be delivered under a shipment contract. This contract requires Elegant Carpets, the seller, to​
A) ​allow the buyer to reject the goods for any reason.
B) ​deliver the goods to a particular destination.
C) ​inspect the goods before shipping them.
D) ​place the goods into the hands of a carrier.

Accepted Answer

The contract states that it is a shipment contract, which means the seller is only responsible for placing the goods into the hands of a carrier. The buyer is responsible for any damages or losses that occur during transit. Therefore, choice D is the correct answer. Choices A, B, and C are not applicable to this type of contract.

Question 13

Implied warranties can arise from a "usage of trade."​

Accepted Answer

Implied warranties can arise from a "usage of trade" if it is customary in a particular industry or trade for certain products to have certain warranties, even if those warranties are not explicitly stated in the sales contract.

Question 14

To specifically disclaim an implied warranty of merchantability, a seller or lessor must mention the word merchantability.​

Accepted Answer

According to the Uniform Commercial Code (UCC), in order to disclaim an implied warranty of merchantability, the word "merchantability" must be explicitly mentioned in the disclaimer. If not mentioned, the warranty remains implied.

Question 15

A statute of limitation may restrict the time within which an action for breach of warranty may be brought.​

Accepted Answer

A statute of limitation sets a specific time limit within which a legal action must be brought, and if the time limit is exceeded, the claimant will lose their right to pursue the action. Therefore, it may restrict the time within which an action for breach of warranty can be brought.

Question 16

Generally, the implied warranties of merchantability and fitness for a particular purpose cannot be disclaimed.​

Accepted Answer

The implied warranties of merchantability and fitness for a particular purpose can generally be disclaimed if the disclaimer is made clearly and conspicuously, often with specific language required by the Uniform Commercial Code (UCC).

Question 17

Express warranties displace inconsistent implied warranties with no exception.​

Accepted Answer

Express warranties do not always displace inconsistent implied warranties unless specifically stated. Implied warranties can still apply unless expressly disclaimed or modified by the express warranty.

Question 18

Statements of opinion and value usually create express warranties.​

Accepted Answer

Statements of opinion and value are generally not considered to create express warranties in the context of sales law; express warranties are typically created by factual claims about a product or service.

Question 19

Natural Eggs, Inc. agrees to supply Omelet Express with five hundred eggs. Natural Eggs can not reasonably ask Omelet Express to pick up the eggs at​
A) ​1:00 P.M.
B) ​2:00 P.M.
C) ​3:00 P.M.
D) ​2:00 A.M.

Accepted Answer

Natural Eggs cannot reasonably ask Omelet Express to pick up the eggs at 2:00 A.M. as it is an unreasonable time for a delivery or pickup. The other options during the day are reasonable times for a pickup.

Question 20

Every sale or lease by a merchant who deals in goods of the kind sold or leased automatically gives rise to an implied warranty of merchantability.​

Accepted Answer

This is a correct statement according to the Uniform Commercial Code (UCC), which establishes that a merchant selling or leasing goods of a particular kind automatically provides an implied warranty of merchantability to the buyer or lessee. This warranty ensures that the goods are fit for their ordinary purpose and meet the reasonable expectations of the buyer or lessee regarding quality, safety, and performance.

Quiz 16: Performance, Breach, and Warranties of Sales and Lease Contracts

An action for breach of warranty accrues when the seller or lessor tenders delivery.​

A seller is not required to give a written warranty for consumer goods sold.​

General descriptions take precedence over inconsistent samples.​

A product is unmerchantable if an accident could arise in connection with the goods.​

If warranties are inconsistent, implied warranties displace express warranties.​

Game Source Stores are open to consumers. The UCC requirement of good faith imposes​

A seller or lessor can disclaim all oral express warranties by including in the contract a written disclaimer.​

Pine Mills Inc. and Quality Lumber Company enter into a contract for a sale of plywood to be delivered under a destination contract. This contract requires Pine Mills, the seller, to​

Puffery is an expert's opinion that creates an express warranty.​

Fuel Connector Products, Inc., agrees to sell Go-Flo, Inc., a certain quantity of hose couplings and fittings, but the contract does not specify a place of delivery. Go-Flo is expected to pick up the goods. The place of delivery is​

Merchants are absolute insurers against all accidents arising in connection with the goods.​

Elegant Carpets, Inc., and Fantastic Floors Stores enter into a contract for a sale of carpeting to be delivered under a shipment contract. This contract requires Elegant Carpets, the seller, to​

Implied warranties can arise from a "usage of trade."​

To specifically disclaim an implied warranty of merchantability, a seller or lessor must mention the word merchantability.​

A statute of limitation may restrict the time within which an action for breach of warranty may be brought.​

Generally, the implied warranties of merchantability and fitness for a particular purpose cannot be disclaimed.​

Express warranties displace inconsistent implied warranties with no exception.​

Statements of opinion and value usually create express warranties.​

Natural Eggs, Inc. agrees to supply Omelet Express with five hundred eggs. Natural Eggs can not reasonably ask Omelet Express to pick up the eggs at​

Every sale or lease by a merchant who deals in goods of the kind sold or leased automatically gives rise to an implied warranty of merchantability.​

An action for breach of warranty accrues when the seller or lessor tenders delivery.

A seller is not required to give a written warranty for consumer goods sold.

General descriptions take precedence over inconsistent samples.

A product is unmerchantable if an accident could arise in connection with the goods.

If warranties are inconsistent, implied warranties displace express warranties.

Game Source Stores are open to consumers. The UCC requirement of good faith imposes

A seller or lessor can disclaim all oral express warranties by including in the contract a written disclaimer.

Pine Mills Inc. and Quality Lumber Company enter into a contract for a sale of plywood to be delivered under a destination contract. This contract requires Pine Mills, the seller, to

Puffery is an expert's opinion that creates an express warranty.

Fuel Connector Products, Inc., agrees to sell Go-Flo, Inc., a certain quantity of hose couplings and fittings, but the contract does not specify a place of delivery. Go-Flo is expected to pick up the goods. The place of delivery is

Merchants are absolute insurers against all accidents arising in connection with the goods.

Elegant Carpets, Inc., and Fantastic Floors Stores enter into a contract for a sale of carpeting to be delivered under a shipment contract. This contract requires Elegant Carpets, the seller, to

Implied warranties can arise from a "usage of trade."

To specifically disclaim an implied warranty of merchantability, a seller or lessor must mention the word merchantability.

A statute of limitation may restrict the time within which an action for breach of warranty may be brought.

Generally, the implied warranties of merchantability and fitness for a particular purpose cannot be disclaimed.

Express warranties displace inconsistent implied warranties with no exception.

Statements of opinion and value usually create express warranties.

Natural Eggs, Inc. agrees to supply Omelet Express with five hundred eggs. Natural Eggs can not reasonably ask Omelet Express to pick up the eggs at

Every sale or lease by a merchant who deals in goods of the kind sold or leased automatically gives rise to an implied warranty of merchantability.