Question 1

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

Accepted Answer

Implied warranties can arise from common practices or customs in a particular industry, also known as a "usage of trade."

Question 2

A warranty of title cannot be disclaimed.

Accepted Answer

A warranty of title can be disclaimed with specific language or under certain conditions, indicating that the seller is not guaranteeing clear title to the buyer.

Question 3

To be merchantable,goods must be at least average,fair,or medium-grade quality.

Accepted Answer

This statement is true. To be considered merchantable, goods must meet a certain level of quality, which is typically at least average, fair, or medium-grade.

Question 4

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 5

Eve'sPastries & Pies contracts with Fruits 2 You,Inc.,for strawberries to be delivered by Kool Refrigerated Trucking. On the day of delivery,the refrigeration on Kool's trucks is not working. Fruits 2 You

Accepted Answer

Fruits 2 You can still fulfill its obligation under the contract by using a different carrier to deliver the strawberries. As long as the berries are delivered in good condition and on time, Eve'sPastries & Pies should not suffer any damages.

Question 6

Puffery creates an express warranty.

Accepted Answer

Puffery is an exaggerated or subjective claim that cannot be proven or verified. It is not considered a factual statement and therefore cannot create an express warranty.

Question 7

To specifically disclaim an implied warranty of fitness for a particular purpose,a seller or lessor must mention the word fitness.

Accepted Answer

The answer of To specifically disclaim an implied warranty of...

Question 8

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 statement is true as per the Uniform Commercial Code (UCC) which provides for an implied warranty of merchantability in every sale or lease of goods by a merchant dealing in goods of the kind sold or leased. This means that the goods sold must be of a quality that is generally acceptable within the trade, fit for their intended purpose, and properly packaged and labeled.

Question 9

Statements of fact made during the bargaining process are express warranties.

Accepted Answer

Statements of fact made during the bargaining process, whether orally or in writing, can be considered as express warranties. This means that the seller is guaranteeing the truthfulness of the statement, and if it proves to be false, the buyer can seek remedies for breach of warranty.

Question 10

Promises of fact made during the bargaining process are express warranties.

Accepted Answer

Express warranties are promises of fact made during the bargaining process, which can be either written or spoken, and become a part of the contract.

Question 11

If a warranty of infringement is breached and the buyer is sued by the claim holder,the buyer need not notify the seller of the lawsuit.

Accepted Answer

The buyer is required to notify the seller of the lawsuit in the event of a warranty of infringement breach. This allows the seller the opportunity to defend against the claim or to fulfill their obligation under the warranty. Failure to notify the seller could impact the buyer's ability to seek damages from the seller.

Question 12

In sales law,failing to examine the goods and refusing to examine the goods are considered the same thing.

Accepted Answer

Failing to examine the goods means not inspecting the goods thoroughly or carefully, whereas refusing to examine the goods means explicitly denying the opportunity to inspect the goods. They are not the same thing.

Question 13

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

Accepted Answer

According to the Uniform Commercial Code (UCC), a seller or lessor must use the word "merchantability" or make other clear references to it in order to disclaim the implied warranty of merchantability. If the word is not mentioned or clear references aren't made, the warranty remains in effect.

Question 14

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 15

Express warranties can be found in a seller's brochure.

Accepted Answer

Express warranties are explicit promises made by the seller, which can be found in a seller's brochure or other marketing materials.

Question 16

Fruited Plain,Inc.,agrees to sell high-quality grain seed to Grange Co-op. Because only half of the quantity ordered is available,Fruited Plain ships a lesser quality seed in twice the amount of the remainder of the order for the same price. Grange Co-op rejects the lesser quality seed. With time for performance not yet expired,Fruited Plain can

Accepted Answer

Fruited Plain still has time to cure the defect and provide the high-quality grain seed that was originally agreed upon in the contract. This is the best option for resolving the issue and fulfilling the terms of the contract. Cancelling the contract or seeking damages may not be the most productive approach at this stage, as there is still a chance to deliver the correct product. Reselling or disposing of the seed without authorization from Grange Co-op could also lead to legal complications.

Question 17

Gold Medical Supply Company and Home & Hospice Care,Inc.,enter into a contract for a sale of health care equipment and supplies. Under either a shipment contract or a destination contract,the seller must

Accepted Answer

In a shipment contract, the seller is required to place the goods into the hands of a carrier. In a destination contract, the seller must deliver the goods to a particular destination. However, the question asks for what the seller must do under either type of contract, and placing the goods into the hands of a carrier is a requirement common to both types.

Question 18

Pleasant Valley Dairy agrees to sell a certain quantity of ice cream to Coffee & Dessert Caterers,but their contract does not specify the address at which the goods are to be delivered. If the parties fail to specify the address before the delivery date

Accepted Answer

Since the contract does not specify the address at which the goods are to be delivered, it is deemed to be within Pleasant Valley Dairy's control. Therefore, they are excused for any resulting delay. This is because the parties failed to fulfill the essential requirements of the contract. However, it is expected that the parties would try to resolve the issue and come to a suitable agreement for the delivery of the goods.

Question 19

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

Accepted Answer

Since the contract does not specify a place of delivery and Go-Flo is expected to pick up the goods, the default place of delivery would be Fuel Connector's place of business.

Question 20

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

Accepted Answer

According to the Uniform Commercial Code, a seller or lessor can disclaim all oral express warranties by including a written disclaimer in the contract.

Quiz 22: Performance and Breach of Sales and Lease Contracts