Question 1

Band Instruments,Inc.,sells seventy-six trombones to Community & School Band Source,Inc. To avoid liability for most implied warranties,Band Instruments should state in writing that the trombones are sold
A)as is.
B)by a merchant.
C)in perfect condition.
D)with no known defects.

Accepted Answer

By stating that the trombones are sold "as is," Band Instruments is indicating that they are not making any warranties about the condition or quality of the instruments. This can help protect them from liability if there are any issues with the trombones after they are sold.

Question 2

Stella bought a cup of coffee at the Roasted Bean Drive-Thru. The coffee had been heated to 190 degrees and consequently had dissolved the inside of the cup. When Stella lifted the lid,the cup collapsed,spilling the contents on her lap. To recover for th

Accepted Answer

The answer of Stella bought a cup of coffee at...

Question 3

Dependable Appliances,Inc.,and Elaine enter into a contract for a sale of kitchen appliances. Dependable,a merchant who deals in goods of the kind sold,notes that its goods come with an implied warranty of merchantability. Under the UCC,this means that the goods are reasonably
A)fit for the buyer's particular purpose.
B)fit for the ordinary purpose for which such goods are used.
C)suitable for resale at an acceptable price.
D)the best quality that money can buy.

Accepted Answer

According to the UCC, an implied warranty of merchantability means that the goods are fit for the ordinary purpose for which such goods are used. Option A refers to an implied warranty of fitness for a particular purpose, while option C refers to an implied warranty of fitness for resale, neither of which is applicable in this case. Option D is not accurate as the goods are not necessarily of the best quality that money can buy, only reasonably fit for their ordinary purpose.

Question 4

Replay Sports Stores and SportsPower Products,Inc.,enter into a contract for a sale of trampolines. SportsPower Productsis a merchant who deals in goods of the kind sold. Under the UCC,an implied warranty of merchantability arises
A)automatically.
B)only if the buyer asks for such a warranty.
C)only if the seller expresses such a warranty.
D)only in conjunction with lease contracts,not sales contracts.

Accepted Answer

According to the UCC, an implied warranty of merchantability arises automatically in sales contracts where the seller is a merchant dealing in goods of the kind sold. Therefore, option A is the correct choice as it states that the warranty arises automatically. Option B is incorrect as the buyer does not have to ask for the warranty. Option C is also incorrect as the warranty arises automatically and does not need to be expressed by the seller. Finally, option D is incorrect as the implied warranty of merchantability applies to both sales and lease contracts.

Question 5

Quade is an expert in twentieth-century art. Rachel visits Quade's gallery,seeking to buy artwork as an investment. Quade shows her a painting that in his opinion is by Picasso. Quade's statement is
A)an express warranty.
B)an implied warranty.
C)a warranty of title.
D)puffery.

Accepted Answer

Quade is making a statement about the authenticity of the painting, which is considered an express warranty.

Question 6

Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis,they snap in two. The cause is something that Beginners Run did not know about and could not have discovered. Beginners Run breached
A)the merchant's implied duty of inspection.
B)the implied warranty of merchantability.
C)no duty or warranty because Beginners Run knew nothing about the defect that made the goods unsafe.
D)no duty or warranty because consumers should reasonably expect to occasionally find a product that does not work as warranted.

Accepted Answer

The answer of Beginners Run Ski Shop sells a pair...

Question 7

Signal Sets Company contracts to deliver one hundred 52-inch plasma high-definition television sets to a new retail customer,Tuner TV Store,on May 1,with payment to be made on delivery. Signal tenders delivery in its own truck. Tuner's manager notices that some of the cartons have scrape marks. Tuner's owner phones Signal's office and asks whether the sets might have been damaged as they were being loaded. Signal assures Tuner that the sets are in perfect condition. Tuner tenders Signal a check,which Signal refuses,claiming that the first delivery to new customers is always for cash. Tuner promises to pay the cash within two days. Signal leaves the sets with Tuner,which stores them in its warehouse pending its "Grand Opening Sale" on May 15. Two days later,Tuner's stocker opens some of the cartons and discovers that a number of the sets are damaged beyond ordinary repair. Signal claims Tuner has accepted the sets and is in breach by not paying on delivery. Will Signal succeed on these claims? Explain.

Accepted Answer

The answer of Signal Sets Company contracts to deliver one...

Question 8

Freddi buys bike shoes from Get n' Gear Store,telling the clerk that she wants the shoes to compete in High Pace Triathlon. The shoes break apart during the competition,caus-ing Freddi to be injured in a fall. Get n' Gear most likely breached
A)an express warranty.
B)an implied warranty of fitness for a particular purpose.
C)an implied warranty of merchantability.
D)a warranty of title.

Accepted Answer

Freddi clearly specified that she wanted the shoes for the purpose of a high pace triathlon which implies a particular purpose. By selling her the shoes, Get n' Gear implied that they were fit for this particular purpose. Since the shoes did not hold up, the store breached the implied warranty of fitness for a particular purpose.

Question 9

Chord Guitars Inc. sells guitars and other stringed instruments to consumers. A Chord salesperson says to a potential customer,"This Chord is the best guitar you'll find anywhere,even online." This statement is
A)an implied warranty of fitness for a particular purpose.
B)an implied warranty of merchantability.
C)an express warranty.
D)puffery.

Accepted Answer

This statement is an example of puffery, which is a subjective claim that cannot be proven true or false. It is a common marketing tactic used to promote a product without making any specific guarantees or promises to the customer.

Question 10

MotorCo Inc. makes and sells auto parts to retail repair services,vehicle sales outlets,and consumer parts stores. On one MotorCo box is a label that reads "Contains one gross (144)sparkplugs,assorted sizes." This statement is
A)an implied warranty of fitness for a particular purpose.
B)an implied warranty of merchantability.
C)an express warranty.
D)none of the choices.

Accepted Answer

This label is an express warranty because it directly states the number of sparkplugs contained in the box and their assorted sizes. It is not an implied warranty of fitness for a particular purpose or merchantability because it does not make any claims about the quality or suitability of the sparkplugs for a specific use or that they are fit for sale.

Question 11

Watercourse Pipe Company includes in its contracts a provision that reads,in large red letters,"There are no warranties that extend beyond the description on the face hereof." This disclaimer negates
A)the implied warranty of fitness for a particular purpose.
B)the implied warranty of merchantability.
C)the implied warranty of title.
D)none of the choices.

Accepted Answer

The answer of Watercourse Pipe Company includes in its contracts...

Question 12

Kramer goes to Lawn & Garden to tune up his mower. Martin,the service tech-ni-cian,learns that Kramer's lawn is overgrown and rocky and advises the use of a certain type of oil,plug,filter,and blade. Later,while Kramer is mowing his lawn,the mower breaks down due to the use of the items recommended by Martin. Kramer may recover from Lawn & Garden for breach of
A)an express warranty.
B)an implied warranty of fitness for a particular purpose.
C)an implied warranty of merchantability.
D)a warranty of title.

Accepted Answer

Martin advised Kramer on the specific items to use with knowledge of Kramer's specific needs, indicating an implied warranty of fitness for a particular purpose - the purpose being the specific conditions of Kramer's lawn. The fact that the mower broke down due to using the recommended items implies that they were not fit for the particular purpose intended.

Quiz 22: Performance and Breach of Sales and Lease Contracts

Band Instruments,Inc.,sells seventy-six trombones to Community & School Band Source,Inc. To avoid liability for most implied warranties,Band Instruments should state in writing that the trombones are sold

Stella bought a cup of coffee at the Roasted Bean Drive-Thru. The coffee had been heated to 190 degrees and consequently had dissolved the inside of the cup. When Stella lifted the lid,the cup collapsed,spilling the contents on her lap. To recover for th

Dependable Appliances,Inc.,and Elaine enter into a contract for a sale of kitchen appliances. Dependable,a merchant who deals in goods of the kind sold,notes that its goods come with an implied warranty of merchantability. Under the UCC,this means that the goods are reasonably

Replay Sports Stores and SportsPower Products,Inc.,enter into a contract for a sale of trampolines. SportsPower Productsis a merchant who deals in goods of the kind sold. Under the UCC,an implied warranty of merchantability arises

Quade is an expert in twentieth-century art. Rachel visits Quade's gallery,seeking to buy artwork as an investment. Quade shows her a painting that in his opinion is by Picasso. Quade's statement is

Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis,they snap in two. The cause is something that Beginners Run did not know about and could not have discovered. Beginners Run breached

Freddi buys bike shoes from Get n' Gear Store,telling the clerk that she wants the shoes to compete in High Pace Triathlon. The shoes break apart during the competition,caus-ing Freddi to be injured in a fall. Get n' Gear most likely breached

Chord Guitars Inc. sells guitars and other stringed instruments to consumers. A Chord salesperson says to a potential customer,"This Chord is the best guitar you'll find anywhere,even online." This statement is

MotorCo Inc. makes and sells auto parts to retail repair services,vehicle sales outlets,and consumer parts stores. On one MotorCo box is a label that reads "Contains one gross (144) sparkplugs,assorted sizes." This statement is

Watercourse Pipe Company includes in its contracts a provision that reads,in large red letters,"There are no warranties that extend beyond the description on the face hereof." This disclaimer negates