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Because a warranty imposes a duty on the seller, a breach of warranty is a breach of the seller's promise.

A) True
B) False

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A salesperson's statement of fact about goods, such as a product's capability, made during the bargaining process, is not an express warranty.

A) True
B) False

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Warranties of title arise automatically in most sales contracts-a thief breaches the warranty by selling stolen goods.

A) True
B) False

Correct Answer

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An implied warranty can arise as a result of a well-recognized trade custom that a court could infer the parties intended to apply to their contract.

A) True
B) False

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An express warranty arises when a seller or lessor indicates that the goods are the "best" of the kind of goods sold.

A) True
B) False

Correct Answer

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In an action based on breach of implied warranty, a buyer must show that the warranty existed and its breach proximately caused the damage sustained.

A) True
B) False

Correct Answer

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Precision Parts Corporation and competitive merchants who deal in goods of the same kind assert that their products are of the proper quality. This is


A) an express warranty.
B) an implied warranty.
C) a warranty of title.
D) puffery.

E) B) and C)
F) A) and C)

Correct Answer

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Brass Inc. sells seventy-six trombones to Community Band. To avoid liability for most implied warranties, Brass 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.

E) A) and B)
F) A) and C)

Correct Answer

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If it is unreasonable for two warranties to be considered consistent, the intention of the parties determines which is dominant.

A) True
B) False

Correct Answer

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An express warranty can be created only by an express warranty provision in a sales or lease contract.

A) True
B) False

Correct Answer

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Determining whether a statement constitutes an express warranty can depend on the context in which the statement was made.

A) True
B) False

Correct Answer

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Packaged Foods Inc. and competitive merchants who deal in goods of the same kind imply that their products are properly packaged and labeled. This is


A) an express warranty.
B) an implied warranty.
C) a warranty of title.
D) puffery.

E) B) and D)
F) None of the above

Correct Answer

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A seller's statement of opinion or recommendation about goods, such as a medical device's appropriateness for an unapproved use, is not an express warranty.

A) True
B) False

Correct Answer

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Holiday Corporation sells Idyll-brand campers and trailers. Under most circumstances, Holiday will be presumed to have warranted that its title to the goods is


A) the same as every other merchant who deals in goods of the kind.
B) none of the choices-a warranty of title is not presumed.
C) good and valid.
D) only such as the seller has acquired in the goods.

E) C) and D)
F) B) and D)

Correct Answer

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In many states, in a lemon-law dispute submitted for arbitration according to the program in a vehicle manufacturer's warranty, the decision of the arbitration panel is binding on


A) the manufacturer but not the purchaser.
B) the purchaser but not the manufacturer.
C) the manufacturer and the purchaser.
D) neither the manufacturer nor the purchaser.

E) None of the above
F) A) and D)

Correct Answer

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Because each type of warranty is created in a different way, the manner in which a warranty can be disclaimed varies with the type of warranty.

A) True
B) False

Correct Answer

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A court is most likely to infer that both parties to a sale or lease of goods intended for a well-recognized trade custom to apply to their contract


A) despite evidence to the contrary.
B) when both parties had knowledge of the custom.
C) in the absence of negligence on the part of the seller or lessor.
D) if no implied warranty arises from the parties' course of dealing.

E) A) and B)
F) A) and D)

Correct Answer

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Home Remodel Inc. and Ivan enter into a contract for a sale of countertops. Home, 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 that money can buy.

E) B) and C)
F) None of the above

Correct Answer

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A warranty that the law derives by inference from the nature of a transaction or the relative situations or circumstances of the parties is


A) an express warranty.
B) an implied warranty.
C) a warranty of title.
D) not a warranty.

E) A) and B)
F) A) and C)

Correct Answer

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Cato, a salesperson for Durable Sportswear Corporation, tells Elan, a buyer for Footwear Inc., that Durable's athletic shoes are made of certain materials. This is


A) an express warranty.
B) an implied warranty.
C) a statement of opinion.
D) puffery.

E) All of the above
F) A) and B)

Correct Answer

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