Question 1

Grande Floors, Inc., and Home Decor Stores enter into a contract for a sale of carpeting. Grande Floors, a merchant who deals in goods of the kind sold, makes express warranties in connection with the sale. Under the UCC, at the time a contract is formed, an express warranty can be disclaimed or modified
A) by clear, conspicuous language called to the buyer's attention.​
B) ​by implied affirmations of fact relating to the goods.
C) ​in any way that the seller sees fit for the ordinary purpose.
D) ​in no way.

Accepted Answer

Under the UCC, at the time a contract is formed, an express warranty can be disclaimed or modified by clear, conspicuous language called to the buyer's attention. This means that the disclaimer or modification must be presented in a way that the buyer would notice and understand.

Question 2

Aerospace, Inc., makes and sells flight navigation equipment, through independent salespersons, to retailers for resale to consumers. The Magnuson-Moss Warranty Act covers
A) ​implied warranties, oral statements, and written promises.
B) ​only implied warranties that consumers are aware of.
C) ​only a salesperson's oral statements.
D) ​only a seller's written promises.

Accepted Answer

The answer of Aerospace, Inc., makes and sells flight navigation...

Question 3

Clark purchases a new car from Dicey's Deals. The retail installment contract states immediately above the buyer's signature in large, bold type: "There are no warranties that extend beyond the description on the face hereof" and "There are no express warranties that accompany this sale unless expressly written in this contract." Before purchasing the car, Clark specifically informed Dicey's salesperson that he wanted a car that could be driven in a dusty area without needing mechanical repairs. Dicey's salesperson said to Clark, "Nothing will go wrong with this car, but if it does, return it to us, and we will repair it without cost to you." Neither this statement nor any similar statement appears in the retail sales contract. Clark drives the car into a dust storm. The air filter gets plugged up, and the car engine overheats, causing motor damage. Dicey's refuses to repair the engine under any warranty. Clark claims that Dicey's is liable for breach of the implied warranty of fitness for a particular purpose, that the Magnuson-Moss Warranty Act prohibits disclaiming this implied warranty, and that the salesperson's express warranty has also been breached. What are the problems with Clark's claims?

Accepted Answer

The answer of Clark purchases a new car from Dicey's...

Question 4

Langston steals from MindGames, Inc., ten game players, which Langston sells to Nu2U Games store. Unaware that the players are stolen, Nu2U reconditions them and sells them to Online Distributors, Inc. With the reconditioned drives, Nu2U gives Online Distributors a written statement that disclaims "any and all warranties." MindGames learns that Online Distributors has the players and demands their return. Online Distributors gives the equipment to MindGames and files a suit against Nu2U. Will Online Distributors succeed in its suit? Why or why not?

Accepted Answer

The answer of Langston steals from MindGames, Inc., ten game...

Question 5

Sugar & Spice, Inc., and Taste Treats stores enter into a contract for a sale of confections. Sugar & Spice, a merchant who deals in goods of the kind sold, makes express warranties in connection with the sale. Under the UCC, at the time a contract is formed, an express warranty can be disclaimed or modified
A) ​by clear, conspicuous language called to the buyer's attention.
B) ​by implied affirmations of fact relating to the goods.
C) ​in any way that the seller sees fit for the ordinary purpose.
D) ​in no way.

Accepted Answer

Under the UCC, an express warranty can be disclaimed or modified by clear, conspicuous language called to the buyer's attention. The disclaimer must be prominently displayed so that the buyer is aware of it at the time of purchase. The seller cannot disclaim or modify an express warranty in any way they see fit and must follow the guidelines set forth in the UCC.

Question 6

Music, Inc., sells fifty MP3 players to Noise Stores, Inc. To avoid liability for most implied warranties, in some states Music could simply state in writing that the players are sold
A) ​as is.
B) ​by a merchant.
C) ​in perfect condition.
D) ​with no known defects.

Accepted Answer

By stating that the players are sold "as is," Music, Inc. is indicating that they are not making any guarantees or warranties about the quality or condition of the product. This would limit their liability for any defects or issues with the MP3 players. The other options do not provide as strong of a defense against liability for implied warranties.

Question 7

Ocean Vessels, Inc., and Pacific Harbor Company enter into a contract for a sale of a boat. Ocean is a merchant who deals in goods of the kind sold. The goods are defective. Under the UCC, the implied warranty of merchantability is breached
A) ​only if Ocean did not know of and could not have discovered the defect.
B) ​only if Ocean did not know of the defect.
C) ​only if Ocean knew about or could have discovered the defect.
D) ​regardless of what Ocean knew or could have discovered.

Accepted Answer

The answer of Ocean Vessels, Inc., and Pacific Harbor Company...

Question 8

Marcos buys a pneumatic drill from NuTools Inc. Owen leases a table saw from Piecework Tools Sales & Lease Company. Later, Marcos and Owen become aware of defects in the goods that indicate breaches of warranty. An action for breach of warranty accrues when
A) ​the seller or lessor tenders delivery.
B) ​the buyer or lessee becomes aware of the breach.
C) ​the nonbreaching party notifies the breaching party of the breach.
D) ​four years have passed since the breach occurred.

Accepted Answer

An action for breach of warranty accrues when the seller or lessor tenders delivery, as this is the point at which the buyer or lessee can first evaluate the goods against the warranties provided.

Question 9

Eden Valley Ranch and Farm Supply Corporation enter into a contract for a sale of fencing materials. Farm Supply, a merchant who deals in goods of the kind, makes implied and express warranties in connection with the sale. Under the UCC, if these are inconsistent
A) ​all implied warranties displace all express warranties.
B) ​all express warranties displace all implied warranties.
C) ​the implied warranty of fitness for a particular purpose takes precedence.
D) ​the implied warranty of merchantability takes precedence.

Accepted Answer

The answer of Eden Valley Ranch and Farm Supply Corporation...

Question 10

Sigrud buys spiked mountain-climbing shoes from Rockridge Gear store. Rockridge does not know that Sigrud plans to wear the shoes to climb Tower Mountain. When Sigrud is on the mountain, the spikes come out of the shoes, causing her to fall and be injured. Rockridge breached
A) ​an express warranty.
B) ​an implied warranty of fitness for a particular purpose.
C) ​an implied warranty of merchantability.
D) ​none of the choices.

Accepted Answer

The answer of Sigrud buys spiked mountain-climbing shoes from Rockridge...

Question 11

Banquet Furnishings, Inc., and Christina enter into a contract for a lease of tables, chairs, and items for a wedding reception. Banquet Furnishings, a merchant who deals in goods of the kind sold, generally describes the goods, details technical specifications, and shows a sample. Under the UCC, if these are inconsistent
A) ​the general description displaces the sample.
B) ​the general description displaces the technical specifications.
C) ​the sample takes precedence over the general description.
D) ​the sample takes precedence over the technical specifications.

Accepted Answer

Under the UCC, if the general description and technical specifications conflict with the sample, the sample takes precedence over both the general description and technical specifications.

Question 12

Safe4U Lenses, Inc., assures ThruVu Optical Company that Safe4U's lenses will not crack within a certain range of pressure. ThruVu buys the lenses to prescribe to its customers. When cracks develop within the stated range, ThruVu files a suit against Safe4U. The court is most likely to rule in favor of
A) ​Safe4U, because its statement was an expression of opinion.
B) ​Safe4U, because ThruVu chose Safe4U's products voluntarily.
C) ​ThruVu, because Safe4U's statement was an express warranty.
D) ​ThruVu, because Safe4U's statement constituted puffery.

Accepted Answer

Safe4U's statement was an express warranty, which means that it is a statement of fact that forms part of the basis of the contract between the two companies. If Safe4U's lenses failed to meet the stated standard, ThruVu has the right to seek damages as a result of Safe4U's breach of warranty. Therefore, the court is likely to rule in favor of ThruVu in this case.

Quiz 23: Warranties

Aerospace, Inc., makes and sells flight navigation equipment, through independent salespersons, to retailers for resale to consumers. The Magnuson-Moss Warranty Act covers

Music, Inc., sells fifty MP3 players to Noise Stores, Inc. To avoid liability for most implied warranties, in some states Music could simply state in writing that the players are sold

Ocean Vessels, Inc., and Pacific Harbor Company enter into a contract for a sale of a boat. Ocean is a merchant who deals in goods of the kind sold. The goods are defective. Under the UCC, the implied warranty of merchantability is breached

Marcos buys a pneumatic drill from NuTools Inc. Owen leases a table saw from Piecework Tools Sales & Lease Company. Later, Marcos and Owen become aware of defects in the goods that indicate breaches of warranty. An action for breach of warranty accrues when

Eden Valley Ranch and Farm Supply Corporation enter into a contract for a sale of fencing materials. Farm Supply, a merchant who deals in goods of the kind, makes implied and express warranties in connection with the sale. Under the UCC, if these are inconsistent

Sigrud buys spiked mountain-climbing shoes from Rockridge Gear store. Rockridge does not know that Sigrud plans to wear the shoes to climb Tower Mountain. When Sigrud is on the mountain, the spikes come out of the shoes, causing her to fall and be injured. Rockridge breached