Question 1

Craig went into a hardware store to purchase a saw. He informed the salesclerk that he wanted a saw that would cut through copper tubing. The salesclerk referred Craig to a display of saws on the wall, and Craig 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 or 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) A) and D)
G) A) and C)

Question 2

Yolanda ordered new business cards from her local printer. She sent a proof of the business card to the printer who made a mock-up of the card and sent an email back to Yolanda asking her to inspect the proof as the final product. Yolanda simply said "Looks good" when she replied to the email. She in fact did not even look at the business cards. When Yolanda received the business cards, she noticed her name was misspelled and said "Yolinda" instead of "Yolanda." Does she have any rights against the printer?

Accepted Answer

A)   Yes, the UCC gives her many remedies to rectify the problem.
B)   No, Yolanda waived her warranty by failing to examine the goods as requested by the printer.
C)   Yes, all buyers are protected by warranties.
D)   No, Yolanda will have to seek remedies under the common law which will not allow recovery in this situation.
E)   Yes, under the Consumer Rights Protection Act.F) None of the above
G) C) and D)

Question 3

In the text case, Lucy Mydlach v. DaimlerChrysler Corp, the questions at issue were whether the plaintiff could bring a revocation of acceptance claim against a vehicle manufacturer, and when the statute of limitations began to run under the Magnuson-Moss Act. Which of the following was the result on appeal?

Accepted Answer

A)   The court ruled that a revocation of acceptance claim could be brought against a vehicle manufacturer and that the statute of limitations under the Magnuson-Moss Act began to run when the vehicle was sold.
B)   The court ruled that a revocation of acceptance claim could be brought against a vehicle manufacturer and that the statute of limitations under the Magnuson-Moss Act began to run when repairs under warranty were not properly made.
C)   The court ruled that a revocation of acceptance claim could not be brought against a vehicle manufacturer and that the statute of limitations under the Magnuson-Moss Act began to run when the vehicle was sold.
D)   The court ruled that a revocation of acceptance claim could not be brought against a vehicle manufacturer and that the statute of limitations under the Magnuson-Moss Act began to run when repairs under warranty were not properly made.
E)   The court ruled that a revocation of acceptance claim could not be brought against a vehicle manufacturer and that the statute of limitations under the Magnuson-Moss Act began to run when the manufacturer was notified that a problem with the vehicle existed.F) A) and D)
G) B) and C)

Question 4

When was the Magnuson-Moss Act passed?

Accepted Answer

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

Question 5

What is the warranty of assignability at common law?

Accepted Answer

A)   That when a party "assigns" a contract to another party, the assignor is impliedly providing a warranty of merchantability.
B)   That when a party "assigns" a contract to another party, the assignor is impliedly guaranteeing a warranty of fitness for a particular purpose.
C)   That when a party "assigns" a contract to another party, the assignor is impliedly guaranteeing that the rights being assigned are valid.
D)   That when a party "assigns" a contract to another party, the assignor is expressly guaranteeing a warranty of merchantability for fitness.
E)   That when a party "assigns" a contract to another party, the person being assigned contractual rights expressly agrees to provide consideration.F) A) and E)
G) A) and D)

Question 6

The UCC assumes that the seller has the right to transfer title free and clear of infringements of intellectual property rights of which the buyer does not have knowledge.

Accepted Answer

A) True 
 B)False

Question 7

[Defective Computer] Carmen went to buy a new computer from ABC Computer Sales. The manager, Jared, told her that ABC carried the best computers in the state and perhaps even in the country. Unfortunately, after Carmen bought the computer and took it home, she discovered that it had a number of problems. When she took it back to the store, Jared told her that he was sorry, he was simply giving his opinion when he sold her the computer, and that the store never offers any kind of express or implied warranty on products. Jared told her that is why he never mentioned warranties - because they were not provided.
-Jared's defense would be that he was only giving his opinion when he said the store carried the best computers in the state, even in the country. That is known as ________.

Accepted Answer

A)   Express warranty
B)   Implied warranty
C)   Warranty of fitness for a particular purpose
D)   Acknowledged warranty
E)   PuffingF) None of the above
G) A) and D)

Question 8

Business law teacher Julie was very sensitive about her upcoming 50th birthday. Her students decided to surprise her with a cake. On behalf of her class, Damon, a student, went to the bakery and ordered a cake that said "Happy Birthday - You Look Great!" The salesclerk said there would be no problem having the cake ready and that it should make the birthday girl feel great. Damon was in a big hurry when he picked up the boxed cake, and although the salesclerk asked Damon to take a look at the cake, he declined. Unfortunately, when the cake was opened in class, the icing read, "Happy Birthday - You Look Gray!" The students were mortified, and Julie stormed off angrily, vowing to give a difficult final. Which of the following is true regarding the warranties the bakery breached, if any?

Accepted Answer

A)   Because the salesclerk promised that there would be no problem with the cake, the bakery breached an express warranty and is liable for damages.
B)   The bakery breached the warranty of merchantability and is liable for damages.
C)   Because the salesclerk promised that the cake would make the birthday girl feel great, the bakery breached the implied warranty of fitness for a particular purpose and is liable for damages.
D)   Because food was involved, no warranties were made.
E)   Because Damon failed to inspect the cake, he waived implied and express warranties.F) C) and E)
G) A) and E)

Question 9

Express warranties may be found in advertisements.

Accepted Answer

A) True 
 B)False

Question 10

A salesperson selling a knife tells the potential buyer: "This knife can cut through a phone book. Guaranteed!". Does this statement create a warranty?

Accepted Answer

A)   No, because it is puffing.
B)   No, because it is just a salesperson's statement.
C)   No, because it is not in writing.
D)   Yes, an express warranty.
E)   Yes, an implied warranty.F) A) and E)
G) A) and D)

Question 11

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) C) and E)
G) A) and B)

Question 12

Felipe purchases several new sets of speakers for his new limousines for his car service business from Nellie's SpeakerSeries. In order for the implied warranty of merchantability to be applied to these speaker sets, which of the following is required?

Accepted Answer

A)   Both parties must be merchants and a sale, not a lease, must be involved.
B)   Both parties must be merchants, and either a sale or lease must be involved.
C)   The seller must be a merchant and a sale, not a lease, must be involved.
D)   The seller must be a merchant, and either a sale or lease must be involved.
E)   The seller must be a merchant, goods valued at over $500 must be involved, and either a sale or lease must be involved.F) A) and E)
G) A) and D)

Question 13

According to the rule of privity, warranties may not extend to third parties to a contract.

Accepted Answer

A) True 
 B)False

Question 14

What was the result in the case of Webster v. Blue Ship Tea Room, Inc., the case in which the plaintiff sued after getting a bone caught in her throat while eating fish chowder?

Accepted Answer

A)   That the plaintiff could recover based upon the implied warranty of merchantability.
B)   That the plaintiff could recover based upon the implied warranty of fitness for a particular purpose.
C)   That the plaintiff could recover based on an express warranty.
D)   That the plaintiff could recover based on either breach of an express warranty or breach of the implied warranty of merchantability.
E)   That the plaintiff could not recover because the bone was not a foreign substance to the fish and should have been expected.F) D) and E)
G) All of the above

Question 15

Anthony went into a hardware store to purchase a saw. The salesclerk said of a particular saw, "This saw will cut through metal." Anthony 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 or 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) A) and D)
G) A) and C)

Question 16

Which position 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) D) and E)
G) B) and D)

Question 17

Perry and Tim negotiate a contract governed by the UCC. Perry is worried about being sued, so Perry and Tim negotiate an agreement wherein each will only have 16 months to pursue a claim for breach. Tim, claiming the UCC gives him four years to sue, files a claim after three years. Can Tim go forward with his claim?

Accepted Answer

A)   Yes, because the UCC does allow him four years and parties cannot change that.
B)   Yes, because the UCC allows him four years and parties can only extend the UCC statute of limitations, not shorten it.
C)   No, because buyers and sellers are free to negotiate contractually a shorter time period than the UCC's four year statute of limitations.
D)   No, because parties to a contract are never allowed to negotiate on the statute of limitations.
E)   It depends upon the contract terms.F) None of the above
G) All of the above

Question 18

Is Ryan correct that the car was sold with an implied warranty of fitness for a particular purpose?

Accepted Answer

A)   Yes, because it was promised that the car would pull the boat.
B)   No, because Kristin was only engaged in puffing.
C)   No, because only the manager can make such a warranty.
D)   No, because Kristin made only a warranty of merchantability, not a warranty of fitness for a particular purpose.
E)   No, because no implications were made.F) B) and E)
G) A) and D)

Question 19

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 E)
G) A) and E)

Question 20

If a buyer fails to comply with the statute of limitations, there is a waiver of warranty rights.

Accepted Answer

A) True 
 B)False

Exam 25: Warranties

Felipe purchases several new sets of speakers for his new limousines for his car service business from Nellie's SpeakerSeries. In order for the implied warranty of merchantability to be applied to these speaker sets, which of the following is required?

Correct Answer
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Correct Answer
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Correct Answer
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Express warranties may be found in advertisements.

Correct Answer
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How may a buyer waive implied and express warranties?

Correct Answer
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Is Ryan correct that the car was sold with an implied warranty of fitness for a particular purpose?

Correct Answer
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Anthony went into a hardware store to purchase a saw. The salesclerk said of a particular saw, "This saw will cut through metal." Anthony purchased the saw. What kind of warranty, if any, did the salesclerk make through the statement?

Correct Answer
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Correct Answer
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If a buyer fails to comply with the statute of limitations, there is a waiver of warranty rights.

Correct Answer
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The UCC assumes that the seller has the right to transfer title free and clear of infringements of intellectual property rights of which the buyer does not have knowledge.

Correct Answer
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Correct Answer
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Correct Answer
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What was the result in the case of Webster v. Blue Ship Tea Room, Inc., the case in which the plaintiff sued after getting a bone caught in her throat while eating fish chowder?

Correct Answer
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According to the rule of privity, warranties may not extend to third parties to a contract.

Correct Answer
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Which position have most states adopted in regard to warranty rights of third parties?

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

Correct Answer
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When was the Magnuson-Moss Act passed?

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

Correct Answer
verified

A salesperson selling a knife tells the potential buyer: "This knife can cut through a phone book. Guaranteed!". Does this statement create a warranty?

Correct Answer
verified

What is the warranty of assignability at common law?

Correct Answer
verified

Exam 25: Warranties

Felipe purchases several new sets of speakers for his new limousines for his car service business from Nellie's SpeakerSeries. In order for the implied warranty of merchantability to be applied to these speaker sets, which of the following is required?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Express warranties may be found in advertisements.

Correct AnswerverifiedShow Answer

How may a buyer waive implied and express warranties?

Correct AnswerverifiedShow Answer

Is Ryan correct that the car was sold with an implied warranty of fitness for a particular purpose?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If a buyer fails to comply with the statute of limitations, there is a waiver of warranty rights.

Correct AnswerverifiedShow Answer

The UCC assumes that the seller has the right to transfer title free and clear of infringements of intellectual property rights of which the buyer does not have knowledge.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What was the result in the case of Webster v. Blue Ship Tea Room, Inc., the case in which the plaintiff sued after getting a bone caught in her throat while eating fish chowder?

Correct AnswerverifiedShow Answer

According to the rule of privity, warranties may not extend to third parties to a contract.

Correct AnswerverifiedShow Answer

Which position have most states adopted in regard to warranty rights of third parties?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When was the Magnuson-Moss Act passed?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A salesperson selling a knife tells the potential buyer: "This knife can cut through a phone book. Guaranteed!". Does this statement create a warranty?

Correct AnswerverifiedShow Answer

What is the warranty of assignability at common law?

Correct AnswerverifiedShow Answer

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