Question 1

Express and implied warranties do not displace each other-more than one warranty can cover the same goods in the same transaction.

Accepted Answer

A) True 
 B)False

Question 2

A label reads, "Box contains one bass clarinet." This creates

Accepted Answer

A)  an express warranty that the goods conform to the description.
B)  an implied warranty that the goods are merchantable.
C)  a statement of opinion that the goods are in the package.
D)  a statement of value or worth about the goods.E) None of the above
F) A) and B)

Question 3

Lima buys a new car from Motor City Inc. In the first month after the purchase, the car repeatedly fails to meet standards of quality and performance. To prevail against Motor in a lemon-law dispute, Lima must

Accepted Answer

A)  give the dealer or manufacturer an opportunity to remedy the problem.
B)  take the car to an expert third party for an independent inspection.
C)  file a court action without prior notice of the defect to the dealer.
D)  have reason to know of the cause of the failure.E) A) and B)
F) B) and D)

Question 4

Creekside Mill enters into a contract for a sale of lumber to Development Company. The mill knows the purpose for which the buyer will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises if

Accepted Answer

A)  the buyer relies on the seller to select suitable goods.
B)  the goods are merchantable.
C)  a particular purpose coincides with the ordinary purpose of the goods.
D)  the seller believes that a product is fit for a particular purpose.E) B) and D)
F) A) and D)

Question 5

A seller's statement about the value or worth of goods, such the price that might be charged by a competitor, is not an express warranty.

Accepted Answer

A) True 
 B)False

Question 6

Rena is a book dealer and an expert in the publications of Shakespeare's plays. She tells Toby, an investor in rare books, that in her opinion a certain bound volume is an early edition of several Shakespearean dramas. Rena has warranted

Accepted Answer

A)  nothing.
B)  the basis for a bargain between Toby and the owner of the volume.
C)  the appropriateness of the volume as an investment.
D)  the accuracy of her opinion.E) B) and C)
F) A) and D)

Question 7

Trucks Inc. and United Express Service enter into a contract for a lease of trucks. The lessor is a merchant that deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises

Accepted Answer

A)  automatically.
B)  only if the lessee asks for it.
C)  only if the lessor expresses such a warranty.
D)  only in conjunction with sales, not lease, contracts.E) A) and D)
F) A) and B)

Question 8

A merchant who is in the business of selling certain goods makes an implied warranty of merchantability every time she sells any type of merchandise.

Accepted Answer

A) True 
 B)False

Question 9

The Magnuson-Moss Warranty Act requires that a seller who elects to give a full warranty for consumer goods must

Accepted Answer

A)  discover the buyer's purpose for the purchase before closing the sale.
B)  disclose certain information in "readily understandable language."
C)  deal in goods only of the kind offered for sale.
D)  determine that the products are fit for any foreseeable purpose.E) B) and C)
F) A) and B)

Question 10

3D Printers LLC includes with each sale of its product a technical manual that includes a general description and exact specifications. Specialty Metalwork buys a 3D product but soon realizes that it is not sufficient for Specialty's purpose. On the buyer's claim that the manual's statements are inconsistent, a court is most likely to hold that

Accepted Answer

A)  the general description takes precedence.
B)  the claim of inconsistency is irrelevant to a breach of warranty.
C)  the exact specifications displace the general description.
D)  each statement voids the other.E) A) and B)
F) None of the above

Question 11

Goods that are of only average, fair, or medium-grade quality are not merchantable.

Accepted Answer

A) True 
 B)False

Question 12

If a buyer is sued by a third party holding trademark rights in certain goods, the buyer must notify the seller or forfeit the right to recover the expenses of the suit from the seller.

Accepted Answer

A) True 
 B)False

Exam 23: Warranties

Correct Answer
verified

Goods that are of only average, fair, or medium-grade quality are not merchantable.

Correct Answer
verified

Lima buys a new car from Motor City Inc. In the first month after the purchase, the car repeatedly fails to meet standards of quality and performance. To prevail against Motor in a lemon-law dispute, Lima must

Correct Answer
verified

Creekside Mill enters into a contract for a sale of lumber to Development Company. The mill knows the purpose for which the buyer will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises if

Correct Answer
verified

A label reads, "Box contains one bass clarinet." This creates

Correct Answer
verified

Rena is a book dealer and an expert in the publications of Shakespeare's plays. She tells Toby, an investor in rare books, that in her opinion a certain bound volume is an early edition of several Shakespearean dramas. Rena has warranted

Correct Answer
verified

If a buyer is sued by a third party holding trademark rights in certain goods, the buyer must notify the seller or forfeit the right to recover the expenses of the suit from the seller.

Correct Answer
verified

Trucks Inc. and United Express Service enter into a contract for a lease of trucks. The lessor is a merchant that deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises

Correct Answer
verified

A merchant who is in the business of selling certain goods makes an implied warranty of merchantability every time she sells any type of merchandise.

Correct Answer
verified

Express and implied warranties do not displace each other-more than one warranty can cover the same goods in the same transaction.

Correct Answer
verified

The Magnuson-Moss Warranty Act requires that a seller who elects to give a full warranty for consumer goods must

Correct Answer
verified

A seller's statement about the value or worth of goods, such the price that might be charged by a competitor, is not an express warranty.

Correct Answer
verified

Exam 23: Warranties

Correct AnswerverifiedShow Answer

Goods that are of only average, fair, or medium-grade quality are not merchantable.

Correct AnswerverifiedShow Answer

Lima buys a new car from Motor City Inc. In the first month after the purchase, the car repeatedly fails to meet standards of quality and performance. To prevail against Motor in a lemon-law dispute, Lima must

Correct AnswerverifiedShow Answer

Creekside Mill enters into a contract for a sale of lumber to Development Company. The mill knows the purpose for which the buyer will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises if

Correct AnswerverifiedShow Answer

A label reads, "Box contains one bass clarinet." This creates

Correct AnswerverifiedShow Answer

Rena is a book dealer and an expert in the publications of Shakespeare's plays. She tells Toby, an investor in rare books, that in her opinion a certain bound volume is an early edition of several Shakespearean dramas. Rena has warranted

Correct AnswerverifiedShow Answer

If a buyer is sued by a third party holding trademark rights in certain goods, the buyer must notify the seller or forfeit the right to recover the expenses of the suit from the seller.

Correct AnswerverifiedShow Answer

Trucks Inc. and United Express Service enter into a contract for a lease of trucks. The lessor is a merchant that deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises

Correct AnswerverifiedShow Answer

A merchant who is in the business of selling certain goods makes an implied warranty of merchantability every time she sells any type of merchandise.

Correct AnswerverifiedShow Answer

Express and implied warranties do not displace each other-more than one warranty can cover the same goods in the same transaction.

Correct AnswerverifiedShow Answer

The Magnuson-Moss Warranty Act requires that a seller who elects to give a full warranty for consumer goods must

Correct AnswerverifiedShow Answer

A seller's statement about the value or worth of goods, such the price that might be charged by a competitor, is not an express warranty.

Correct AnswerverifiedShow Answer

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