Question 1

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

Accepted Answer

The UCC implies a warranty of merchantability, which means that 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, which must be explicitly agreed upon between the parties to be effective. Option C is not related to the implied warranty of merchantability. Option D is not accurate as the UCC only requires the goods to be reasonably fit for their ordinary purpose, not the best quality that money can buy.

Question 2

ValuRich Tools, Inc., sells tools, tool parts, and related supplies under "full" warranties. Under the Magnuson-Moss Warranty Act, this means that ValuRich must provide

Accepted Answer

According to the Magnuson-Moss Warranty Act, ValuRich must provide a choice between a refund or replacement if a product cannot be fixed, as well as repair or replacement of defective parts. Therefore, option A is the correct choice.

Question 3

Sweet Candy, Inc., and Tasty Treats stores enter into a contract for a sale of confections. Sweet, 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

Accepted Answer

According to the UCC, 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 written in a way that is easy for the buyer to notice and understand, and cannot be hidden or buried within other information.

Question 4

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, caus?ing her to be injured in a fall. Rockridge breached

Accepted Answer

This scenario involves a potential breach of the implied warranty of fitness for a particular purpose. Sigrud purchased the spiked mountain-climbing shoes specifically for mountain climbing, and the fact that the spikes came out during use suggests that the shoes were not fit for their intended purpose.

Question 5

John is an art dealer with special expertise in modern art. Rachel comes to John's gallery to purchase a modern art painting as an investment. John shows her several paintings that he says are high quality and will increase in value in the next ten years. John's statement is

Accepted Answer

The answer of John is an art dealer with special...

Question 6

Good Tire Company and Hiway Auto Service enter into a contract for a sale of tires. Good Tire is a merchant who deals in goods of the kind sold. Under the UCC, an implied warranty of merchantability arises

Accepted Answer

Under the UCC, an implied warranty of merchantability automatically arises in sales contracts when the seller is a merchant who regularly deals in goods of the kind sold.

Question 7

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

Olga's statement is an example of puffery, which is a term for exaggerated or fanciful claims about a product that are not meant to be taken literally. Puffery is not considered a legally binding statement about a product's quality or characteristics.

Question 8

Jack's Pet Houses, Inc. sells shelters for animals under "limited" warranties. Under the Magnuson-Moss Warranty Act, this means that the warranties on shelters from Jack's Pet Houses

Accepted Answer

A "limited" warranty means that it does not meet one of the requirements of a full warranty under the Magnuson-Moss Warranty Act, such as being free from defects for a specified time period.

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

Carla, as a knowledgeable dog breeder, has expertise and knowledge regarding the characteristics and behavior of dogs. When Fred expresses his specific need for a dog that is good with small children, Carla sells him a dog, implying that it is suitable for that purpose. This creates an implied warranty of fitness for a particular purpose. Since the dog is not fit for the purpose for which it was bought, Fred can sue Carla for breach of the implied warranty of fitness for a particular purpose.

Question 10

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 words "Twenty percent protein" printed on the front of the bags of cattle feed is an express warranty, as it is a clear statement about the quality or performance of the product made by the seller.

Question 11

GR8 Skates Company makes and sells a pair of skates to Hugh. GR8 fails to exercise "due care" to make the skates safe, and Hugh is injured as a result. GR8 is most likely liable for

Accepted Answer

GR8 Skates Company is liable for negligence because they failed to exercise "due care" to make the skates safe, which resulted in Hugh's injury.

Question 12

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

Accepted Answer

The implied warranty of merchantability applies regardless of whether the seller knew or could have discovered the defect. As a merchant who deals in goods of the kind sold, Ocean is presumed to have knowledge of the normal expectations for such goods, and the warranty ensures that they meet those expectations. Therefore, the breach of warranty would apply regardless of what Ocean knew or could have discovered about the defect.

Question 13

Mountain Bikes, Inc. (MBI), and Nero enter into a contract for a sale of a mountain bike. MBI, a merchant who deals in goods of the kind sold, makes implied and express warranties in connection with the sale. The Magnuson-Moss Warranty Act attempts to prevent deception in warranties by

Accepted Answer

The answer of Mountain Bikes, Inc. (MBI), and Nero enter...

Question 14

Regional Wood Products Company and Sylvia enter into a contract for a sale of lumber. Regional knows the purpose for which Sylvia will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises

Accepted Answer

The implied warranty of fitness for a particular purpose arises when the seller is a merchant who deals in goods of the kind sold and the buyer relies on the seller's expertise and judgment to select suitable goods for a particular purpose. Since Regional Wood Products Company is selling lumber, they are considered a merchant who deals in goods of this kind. Additionally, Sylvia is relying on their expertise and judgment to select suitable lumber for a particular purpose, so the implied warranty of fitness for a particular purpose applies.

Question 15

Trucks & Trailers, Inc. (T&T), and United Delivery Service enter into a contract for a lease of trucks. T&T is a merchant who deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises

Accepted Answer

The answer of Trucks & Trailers, Inc. (T&T), and United...

Question 16

Sari buys a new sport utility vehicle (SUV) from Terrific Cars & Trucks, Inc. The most important factor in determining whether an ex?press war?ranty is created is whether

Accepted Answer

The most important factor in determining whether an express warranty is created is whether Terrific's promise becomes part of the basis of the bargain. This means that Terrific's promise must have influenced Sari's decision to purchase the SUV. Without this influence, there is no warranty. The other choices are not as relevant as they do not directly relate to Terrific's promise or influence on the sale.

Question 17

Ceramic Tile Company designs and makes floor tiles. In a product liability suit based on negligence, Ceramic could be liable for vio?lating its duty of care with respect to

Accepted Answer

In a product liability suit based on negligence, Ceramic Tile Company can be held liable for violating its duty of care with respect to both the design and the making of the tiles. They have a responsibility to make sure their product is safe for consumer use, and that includes both the design phase and the manufacturing process. If there was a flaw in either of these stages that led to harm or injury for consumers, Ceramic could be held liable for negligence.

Question 18

Regal Autos, Inc., sells cars to consumers. To avoid liability for oral ex?press warranties, each sales agreement should note that a car is sold

Accepted Answer

The answer of Regal Autos, Inc., sells cars to consumers....

Question 19

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

Accepted Answer

Including a written disclaimer that the lawnmower is being sold "as is" is the best option for Robert to disclaim any implied warranties.

Question 20

Krissa, a horse breeder, shows Maggie, a customer looking for a new stallion for her breeding program, a stallion and tells her that the stallion is very fertile and can easily breed twenty mares per year. Krissa's statement is

Accepted Answer

Krissa's statement is a specific promise regarding the performance of the stallion, which is an express warranty.

Quiz 20: Warranties and Product Liability