Question 1

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

Accepted Answer

Statements of fact made during the bargaining process can be considered as express warranties if they become a basis of the bargain.

Question 2

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

Under both shipment and destination contracts, the seller must provide the buyer with any necessary documents of title to enable the buyer to take possession of the goods.

Question 3

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

Accepted Answer

The answer of In sales law, failing to examine the...

Question 4

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

Accepted Answer

Promises of fact made during the bargaining process are considered express warranties under the Uniform Commercial Code (UCC). These warranties can be written or spoken and are a guarantee that the product or service being sold meets certain standards or characteristics.

Question 5

Eve’s Pastries & 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 to deliver the strawberries by using a different carrier. As long as the strawberries are still delivered in good condition and on time, Eve's Pastries & Pies cannot hold Fruits 2 You responsible for the issue with the refrigerated trucks of Kool Refrigerated Trucking.

Question 6

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 7

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, the default place of delivery is Fuel Connector's place of business, as this is where the goods are located and where Go-Flo is expected to pick them up.

Question 8

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

Accepted Answer

Express warranties are usually stated explicitly in a seller's brochure, advertisement, or packaging.

Question 9

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), in order to disclaim an implied warranty of merchantability, a seller or lessor must use the word "merchantability" in the disclaimer. Simply stating "as is" or "with all faults" is not enough to disclaim this implied warranty.

Question 10

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

Accepted Answer

Implied warranties can arise from a "usage of trade" which refers to a common, regular or established practice within a specific industry or trade, indicating that certain warranties are implied in contracts for goods or services within that industry or trade.

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 must notify the seller of the lawsuit in order to give the seller an opportunity to defend against the claim or to potentially settle with the claim holder. Failure to notify the seller may result in the loss of the buyer's rights against the seller for breach of warranty.

Question 12

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 13

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 has not yet breached the contract, as time for performance has not expired. They have the opportunity to attempt to cure the defect by offering a replacement or remedy for the lesser quality seed. If they are unable to cure the defect, Grange Co-op may have the right to cancel the contract or seek damages. However, Fruited Plain should first attempt to fulfill their obligations under the contract and make things right for the buyer.

Question 14

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 15

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 16

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

If the contract does not specify the address for delivery, it is the responsibility of the buyer to provide that information. If they fail to do so, Pleasant Valley Dairy is not liable for any resulting delay as they cannot be expected to deliver without a proper address.

Question 17

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 18

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

Accepted Answer

In order for goods to be considered merchantable, they must meet at least an average, fair, or medium-grade quality standard.

Question 19

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

Accepted Answer

This is true. According to the Uniform Commercial Code (UCC), a seller or lessor can disclaim all oral express warranties by including in the contract a written disclaimer. However, this disclaimer must be conspicuous and specifically mention oral warranties.

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 known as the implied warranty of merchantability under the Uniform Commercial Code (UCC). It means that the goods sold or leased by a merchant are fit for their intended purpose, of average quality, and properly packaged and labeled.

Quiz 18: Performance and Breach of Sales and Lease Contracts