Question 1

Concrete Products, Inc., assures Deepwater Construction Company (DCC)that Concrete's cement will not crack within a certain range of pressure.This "assurance" is

Accepted Answer

This is an express warranty as Concrete Products, Inc. makes a specific guarantee about the performance of their cement.

Question 2

Sigrud buys spiked mountain-climbing shoes from Rockridge Gear store.The spikes come out of the shoes when Sigrud is on the side of a mountain, causing her to be injured in a fall.Rockridge breached

Accepted Answer

When Sigrud purchased spiked mountain-climbing shoes, it can be reasonably assumed that she intended to use them for mountain climbing. Therefore, Rockridge had an implied warranty of fitness for a particular purpose - that the shoes were fit for the purpose of mountain climbing. The fact that the spikes came out when Sigrud was climbing breached this warranty.

Question 3

Parker, a salesperson for Quality Textiles, Inc., shows Rosa, a fabric buyer for Style Clothing Company, samples of cloth, stating that any shipment will match the samples.This statement is

Accepted Answer

The statement made by Parker is an express warranty, which is a statement made by the seller about the product that becomes a part of the basis of the bargain between the parties. By stating that any shipment will match the samples, Parker is giving Rosa an assurance that the product will be as represented.

Question 4

Fancy's Feedlot orders one hundred sacks of cattle feed from Bovine Feeders, Inc.Each bag has the words "Twenty percent protein" printed on the front.This is

Accepted Answer

The phrase "Twenty percent protein" is a specific claim made by Bovine Feeders, Inc. and is therefore an express warranty.

Question 5

Barry buys a bulldozer from Big Sandbox Equipment Company.Barry is unaware that there is a lien against the bulldozer when he buys it.Under the UCC, if the creditor repossesses the bulldozer, Barry can

Accepted Answer

Barry can recover from Big Sandbox Equipment for breach of warranty because they sold him a bulldozer with a lien, which violates the warranty of title under the UCC.

Question 6

Olga, a salesperson for Pre-owned Cars & Trucks, Inc., tells Quincy, "This is the best car I've ever seen." This statement is

Accepted Answer

This statement is an example of puffery, which is an exaggerated or vague statement of opinion that is not intended to be taken literally or to be a factual statement. Puffery is not considered a legally binding warranty.

Question 7

Robert is selling his used lawnmower.He wants to disclaim any implied warranties.Robert

Accepted Answer

By including a written disclaimer that the lawnmower is being sold "as is," Robert can effectively disclaim any implied warranties that may apply. Without a written disclaimer, he may still be held liable for any issues with the lawnmower. While disclosing known faults is a good practice, it is not a substitute for a written disclaimer. A warranty of title is also not relevant to disclaiming implied warranties.

Question 8

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 9

Fred goes to Carla, a knowledgeable dog breeder, and tells her that he wants to get a dog that will be good with small children.Carla sells Fred a dog.When Fred takes the dog home, it bites both his small children and causes them serious injuries.Fred can sue Carla for breach of

Accepted Answer

An implied warranty of fitness for a particular purpose means that the seller knows what the buyer wants to use the product for, and guarantees that the product is suitable for that specific purpose. In this case, Fred specifically informed Carla that he wanted a dog that would be good with small children, and Carla sold him a dog that turned out to be dangerous for small children. This would be a breach of the implied warranty of fitness for a particular purpose, and Fred could sue Carla for damages.

Question 10

Tune Products, Inc., offers to sell to Unlimited Sales Company one hundred MP3 players at $50 a piece, subject to certain specific delivery dates.Unlimited replies with a signed purchase order that reads, "Accept your offer for 100 I-appliances at $50 each.Must be delivered to our warehouse." Tune does not respond or deliver the goods.Unlimited files a suit for breach of contract, to which Tune answers that there is no contract because Unlimited's purchase order contained additional terms and is not signed by Tune.Can Unlimited recover Explain.

Accepted Answer

The answer of Tune Products, Inc., offers to sell to...

Question 11

Dorothy eats a candy bar made and sold by Eastwich Candy Corporation and becomes ill.Dorothy files a suit against Eastwich, alleging that the candy bar was not merchantable.Merchantable food is food that is fit to eat on the basis of

Accepted Answer

Merchantability is determined by consumer expectations. The food must meet the reasonable expectations of a buyer, including that it is safe to eat and free from defects. Consumers expect that the food they buy is fit for human consumption and will not make them ill.

Question 12

Sari buys a new sport utility vehicle (SUV)from 'Tastic Cars & Trucks, Inc.The most important factor in determining whether an express warranty is created is whether

Accepted Answer

The most important factor in determining whether an express warranty is created is if the promise made by the seller (in this case 'Tastic Cars & Trucks, Inc.) becomes a fundamental part of the agreement or basis of the bargain. Therefore, choice D is the correct answer.

Quiz 16: Sales and Leases

Concrete Products, Inc., assures Deepwater Construction Company (DCC) that Concrete's cement will not crack within a certain range of pressure.This "assurance" is