Question 1

Which of the following is true regarding disclaimers of the implied warranty of merchantability?

Accepted Answer

A)   Any attempt to disclaim the implied warranty of merchantability is per se unconscionable, but a court will enforce the disclaimer if the buyer is another merchant and is fully informed of the disclaimer.
B)   Any attempt to disclaim the implied warranty of merchantability is per se unconscionable, and a court will refuse to enforce the disclaimer.
C)   Under some situations, a disclaimer of the implied warranty of merchantability may be made within 10 days after a sale.
D)   A disclaimer of the implied warranty of merchantability may be done orally.
E)   By federal law, there is no requirement that the term "merchantability" be used in any disclaimer.F) C) and D)
G) D) and E)

Question 2

Under the UCC, the buyer must bring a lawsuit on a breached contract within ______ year(s)  of when the breach occurred or when the buyer became aware of it.

Accepted Answer

A)   One
B)   Two
C)   Three
D)   Four
E)   SixF) B) and D)
G) B) and C)

Question 3

Jack went into a hardware store to purchase a saw; and as to a particular saw, the salesclerk said, "This saw will cut through metal." Jack purchased the saw. What kind of warranty, if any, did the salesclerk make through the statement?

Accepted Answer

A)   The salesclerk made an express warranty, a warranty of trade usage, and a warranty of fitness for a particular purpose.
B)   The salesclerk made a warranty of fitness for a particular purpose, but not an express warranty of a warranty of trade usage.
C)   The salesclerk made an express warranty and a warranty of trade usage, but not a warranty of fitness for a particular purpose.
D)   The salesclerk made an express warranty, but not a warranty of fitness for a particular purpose or a warranty of trade usage.
E)   The salesclerk made a warranty of trade usage, but not a warranty of fitness for a particular purpose or an express warranty.F) B) and E)
G) A) and E)

Question 4

A salespersons' exaggerations that would not be classified as a warranty are known as ______.

Accepted Answer

A)   Puffing
B)   Falsehood
C)   Innocent misrepresentation
D)   Fraudulent misrepresentation
E)   Improper inducementF) B) and E)
G) C) and D)

Question 5

Which of the following is true under the Magnuson-Moss Act if a written warranty is silent as to whether or not it is a full warranty?

Accepted Answer

A)   It is presumed to be a limited warranty.
B)   It is presumed to be an express, limited warranty.
C)   It is presumed to be a limited warranty of merchantability.
D)   It is presumed to be a limited usage of trade warranty.
E)   It is presumed to be a full warranty.F) All of the above
G) B) and E)

Question 6

"Boat Tow." Donnie went to a new car dealership and told the salesperson, Sally, who was not the manager, that he needed a new car that would get good gas mileage and would also pull his big boat. Sally encouraged him to buy a smaller car that she promised would pull the boat. Sally was new to the job and did not realize that the small car did not have sufficient power to pull the boat for any distance. Donnie bought the car and used it to pull the boat. Unfortunately, the heavy pull on the car did significant damage to the car's engine. Donnie complained to the Sally who denied any liability. Donnie, who had half a semester of business law, informed Sally that along with the sale of the car he also received an express warranty, an implied warranty of merchantability, and an implied warranty of fitness for a particular purpose; and that he could recover under any of those theories. Sally truthfully said that no explicit promises regarding warranties were ever made orally or in writing.
-Will Donnie likely be able to recover damages based upon a breach of the implied warranty of merchantability?

Accepted Answer

A)   No, because the implied warranty of merchantability was that the car would, for example, be fit for the ordinary purposes for which such goods are used. Pulling the boat was not an ordinary purpose for that small car.
B)   Yes, because Donnie informed Sally about the need for the car to pull the boat.
C)   Yes, because Sally told Donnie that the car would pull the boat.
D)   No, because of the lack of an implied warranty of fitness for a particular purpose.
E)   No, because there was no warranty of merchantability.F) A) and E)
G) All of the above

Question 7

How may a buyer waive implied and express warranties?

Accepted Answer

A)   A buyer may waive both implied and express warranties through (1)  failing to examine goods for which an express warranty was created by a sample or model or (2)  failing to comply with the seller's request to inspect the goods.
B)   A buyer may waive an implied warranty by failing to comply with the seller's request to inspect the goods, but an express warranty may only be waived by failing to examine goods for which an express warranty was created by a sample or model.
C)   A buyer may waive an express warranty by failing to comply with the seller's request to inspect the goods, but an implied warranty may only be waived by failing to examine goods for which an express warranty was created by a sample or model.
D)   A buyer may waive both implied and express warranties only through signing a statement that such warranties are waived.
E)   A buyer may waive implied warranties only through signing a statement that such warranties are waived, but a buyer may waive express warranties through (1)  failing to examine goods for which an express warranty was created by a sample or model or (2)  failing to comply with the seller's request to inspect the goods.F) B) and D)
G) A) and E)

Question 8

When was the Magnuson-Moss Act passed?

Accepted Answer

A)   1950
B)   1955
C)   1970
D)   1975
E)   2000F) B) and C)
G) C) and E)

Question 9

Which of the following is false regarding what is necessary in order for goods to be merchantable?

Accepted Answer

A)   That goods pass without objection in the trade or market for similar goods.
B)   That goods be fit for the ordinary purposes for which such goods are used.
C)   That goods be adequately contained, packaged, and labeled as the agreement may require.
D)   That goods conform to the promises or affirmations made on the container or label, if any.
E)   That goods be sold without variation.F) B) and E)
G) A) and B)

Question 10

Jack went into a hardware store to purchase a saw. He told the salesclerk that he wanted a saw that would cut through copper tubing. The salesclerk referred Jack to a wall of saws, and Jack purchased one. What kind of warranty, if any, did the salesclerk make?

Accepted Answer

A)   The salesclerk made an express warranty, a warranty of trade usage, and a warranty of fitness for a particular purpose.
B)   The salesclerk made a warranty of fitness for a particular purpose, but not an express warranty of a warranty of trade usage.
C)   The salesclerk made an express warranty and a warranty of trade usage, but not a warranty of fitness for a particular purpose.
D)   The salesclerk made an express warranty, but not a warranty of fitness for a particular purpose or a warranty of trade usage.
E)   The salesclerk made a warranty of trade usage, but not a warranty of fitness for a particular purpose or an express warranty.F) C) and D)
G) All of the above

Question 11

Under the Magnuson-Moss Act, what is the effect of a full warranty?

Accepted Answer

A)   It means that if the good fails or is defective, the good or its defective part will be replaced; and if replacement cannot be timely effected, the buyer has the right to a refund or a full replacement.
B)   It means only that the good or its defective part will be repaired. The buyer has no other remedy.
C)   It means that the good or its defective part will be repaired or replaced if it cannot be repaired. The buyer has no other remedy.
D)   It means that the buyer must be immediately refunded the full purchase price.
E)   It means that the buyer has the option of an immediate refund of the full purchase price or repair of the good.F) B) and D)
G) All of the above

Question 12

The Magnuson-Moss Act requires a full warranty on the sale of goods.

Accepted Answer

A) True 
 B)False

Question 13

Assuming adoption of the UCC, which of the following is true regarding whether the buyer and seller may negotiate a longer time for the statute of limitations than that allowed by the UCC?

Accepted Answer

A)   The buyer and seller may not negotiate a longer time for the statute of limitations than that allowed by the UCC.
B)   The buyer and seller may negotiate a longer time for the statute of limitations than that allowed by the UCC without any limits.
C)   The buyer and seller may negotiate a longer time for the statute of limitations than that allowed by the UCC so long as the time period in which to sue does not extend past one year from the date of breach.
D)   The buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC so long as the time period in which to sue does not extend beyond five years from the date of breach.
E)   The buyer and seller may negotiate a shorter time for the statute of limitations than that allowed by the UCC so long as the time period in which to sue does not extend beyond six years from the date of breach.F) B) and C)
G) A) and E)

Question 14

Which of the following would represent Harold's defense that he was only giving his opinion that the store carried the best computers in the state, even in the country?

Accepted Answer

A)   Express warranty
B)   Implied warranty
C)   Warranty of fitness for a particular purpose
D)   Acknowledged warranty
E)   PuffingF) A) and E)
G) C) and D)

Question 15

Which of the following options have most states adopted in regard to warranty rights of third parties?

Accepted Answer

A)   Seller's warranties extend to the buyer's household members and guests.
B)   Seller's warranties extend to any reasonable and foreseeable user.
C)   Seller's warranties extend to anyone injured by the good.
D)   Seller's warranties extend to the buyer only.
E)   Seller's warranties extend to the buyer and the buyer's family only.F) B) and D)
G) A) and D)

Question 16

Molly goes to the store and buys a toaster that shocks her when she plugs it into the outlet. She returns it to the store and was told that the seller provided no warranties and that she would have to return it to the overseas manufacturer even if the postage to return it to the manufacturer would amount to more than the toaster is worth. Molly believes that is ridiculous. Who is correct under the UCC and why?

Accepted Answer

A)   Molly is correct because by selling the toaster, the seller made an implied warranty of merchantability.
B)   Molly is correct because by selling the toaster, the seller made an express warranty.
C)   Molly is correct because by selling the toaster, the seller made an implied warranty of fitness for a particular purpose.
D)   The seller is correct because only the manufacturer is responsible for warranties on consumer goods.
E)   The seller is correct because while the seller is responsible for warranties for consumer goods costing in excess of $500, only the manufacturer is responsible for lower-priced consumer goods.F) A) and D)
G) C) and D)

Question 17

"Hot Toaster." Rebecca bought a toaster from Super Store and brought it home. A friend of hers, Greg, was at her house making toast. The toaster malfunctioned and shocked Greg resulting in a small burn to his hand requiring medical attention. At a garage sale, Rebecca also purchased a blender from a friend, Samantha, a nurse, with the intention of making smoothies. Unfortunately, the blender was not powerful enough to make smoothies. Assume that not all blenders are designed to provide the texture required for good smoothies.
-Which of the following is true regarding whether Samantha made an implied warranty of fitness for a particular purpose to Rebecca that the blender would make smoothies?

Accepted Answer

A)   Samantha did not make an implied warranty of fitness for a particular purpose because there is no proof that Rebecca was relying on Samantha to make the selection.
B)   Samantha did not make an implied warranty of fitness for a particular purpose because Samantha is not a merchant.
C)   Samantha did not make an implied warranty of fitness for a particular purpose because no express warranty was made.
D)   Samantha made an implied warranty of fitness for a particular purpose to Rebecca that the blender would make smoothies because she had a duty to tell Samantha otherwise.
E)   Regardless of whether she said anything or not, Samantha made both an express warranty and a warranty of fitness for a particular purpose.F) A) and C)
G) A) and B)

Question 18

Express warranties may be found in advertisements.

Accepted Answer

A) True 
 B)False

Question 19

Prudence purchased a new printer for her business from ABC Company. Three years to the day after she purchased the printer, she started noticing problems with it. She negotiated with ABC Company, but was unable to get a resolution to her problems. She sued ABC Company four years and one day after she bought the printer. ABC Company defended on the basis that it was only the seller, not the manufacturer, and also on the basis of the statute of limitations. Assuming the printer is defective and the court follows the reasoning of the case in the text Melissa Kahn v. Volkswagen of America Inc., which of the following is true regarding the positions of the parties?

Accepted Answer

A)   ABC Company will win because although Prudence sued within the statute of limitations, in such situations Prudence must sue the manufacturer.
B)   ABC Company will win because although Prudence correctly sued the seller, Prudence filed suit outside the four year statute of limitations.
C)   ABC Company will win because in such situations Prudence must sue the manufacturer and also because Prudence filed suit outside the four year statute of limitations.
D)   Prudence will be allowed to proceed because she can hold ABC Company responsible and because the statute of limitation was tolled during negotiations, she sued on a timely basis.
E)   Prudence will win because she can hold ABC Company responsible and because there is no statute of limitations for business goods of this type.F) A) and E)
G) A) and D)

Question 20

An express warranty is any description of the good's physical nature or its use, either in general or specific circumstances, that becomes part of the contract.

Accepted Answer

A) True 
 B)False

Exam 25: Warranties

Which of the following options have most states adopted in regard to warranty rights of third parties?

Correct Answer
verified

Which of the following would represent Harold's defense that he was only giving his opinion that the store carried the best computers in the state, even in the country?

Correct Answer
verified

A salespersons' exaggerations that would not be classified as a warranty are known as ______.

Correct Answer
verified

Correct Answer
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Which of the following is true under the Magnuson-Moss Act if a written warranty is silent as to whether or not it is a full warranty?

Correct Answer
verified

Express warranties may be found in advertisements.

Correct Answer
verified

Under the UCC, the buyer must bring a lawsuit on a breached contract within ______ year(s) of when the breach occurred or when the buyer became aware of it.

Correct Answer
verified

Correct Answer
verified

The Magnuson-Moss Act requires a full warranty on the sale of goods.

Correct Answer
verified

Which of the following is false regarding what is necessary in order for goods to be merchantable?

Correct Answer
verified

Correct Answer
verified

Assuming adoption of the UCC, which of the following is true regarding whether the buyer and seller may negotiate a longer time for the statute of limitations than that allowed by the UCC?

Correct Answer
verified

Jack went into a hardware store to purchase a saw; and as to a particular saw, the salesclerk said, "This saw will cut through metal." Jack purchased the saw. What kind of warranty, if any, did the salesclerk make through the statement?

Correct Answer
verified

When was the Magnuson-Moss Act passed?

Correct Answer
verified

How may a buyer waive implied and express warranties?

Correct Answer
verified

Correct Answer
verified

Under the Magnuson-Moss Act, what is the effect of a full warranty?

Correct Answer
verified

An express warranty is any description of the good's physical nature or its use, either in general or specific circumstances, that becomes part of the contract.

Correct Answer
verified

Which of the following is true regarding disclaimers of the implied warranty of merchantability?

Correct Answer
verified

Jack went into a hardware store to purchase a saw. He told the salesclerk that he wanted a saw that would cut through copper tubing. The salesclerk referred Jack to a wall of saws, and Jack purchased one. What kind of warranty, if any, did the salesclerk make?

Correct Answer
verified

Exam 25: Warranties

Which of the following options have most states adopted in regard to warranty rights of third parties?

Correct AnswerverifiedShow Answer

Which of the following would represent Harold's defense that he was only giving his opinion that the store carried the best computers in the state, even in the country?

Correct AnswerverifiedShow Answer

A salespersons' exaggerations that would not be classified as a warranty are known as ______.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is true under the Magnuson-Moss Act if a written warranty is silent as to whether or not it is a full warranty?

Correct AnswerverifiedShow Answer

Express warranties may be found in advertisements.

Correct AnswerverifiedShow Answer

Under the UCC, the buyer must bring a lawsuit on a breached contract within ______ year(s) of when the breach occurred or when the buyer became aware of it.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Magnuson-Moss Act requires a full warranty on the sale of goods.

Correct AnswerverifiedShow Answer

Which of the following is false regarding what is necessary in order for goods to be merchantable?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Assuming adoption of the UCC, which of the following is true regarding whether the buyer and seller may negotiate a longer time for the statute of limitations than that allowed by the UCC?

Correct AnswerverifiedShow Answer

Jack went into a hardware store to purchase a saw; and as to a particular saw, the salesclerk said, "This saw will cut through metal." Jack purchased the saw. What kind of warranty, if any, did the salesclerk make through the statement?

Correct AnswerverifiedShow Answer

When was the Magnuson-Moss Act passed?

Correct AnswerverifiedShow Answer

How may a buyer waive implied and express warranties?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Under the Magnuson-Moss Act, what is the effect of a full warranty?

Correct AnswerverifiedShow Answer

An express warranty is any description of the good's physical nature or its use, either in general or specific circumstances, that becomes part of the contract.

Correct AnswerverifiedShow Answer

Which of the following is true regarding disclaimers of the implied warranty of merchantability?

Correct AnswerverifiedShow Answer

Jack went into a hardware store to purchase a saw. He told the salesclerk that he wanted a saw that would cut through copper tubing. The salesclerk referred Jack to a wall of saws, and Jack purchased one. What kind of warranty, if any, did the salesclerk make?

Correct AnswerverifiedShow Answer

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