Filters
Question type

Study Flashcards

Bren buys a new motorcycle from Cycles Inc. The most important factor in determining whether an express warranty is created is whether


A) Bren expresses to Cycles what she wants warranted.
B) Bren's desire for the cycle becomes part of her motivation to deal.
C) Cycles' expression to Bren of what it expects from its customers.
D) Cycles' promise becomes part of the basis of the bargain.

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

Correct Answer

verifed

verified

Inconsistent warranties are construed to effectively render each other invalid.

A) True
B) False

Correct Answer

verifed

verified

Express warranties cannot be found in marketing brochures or other promotional materials, which are, by definition, only puffery.

A) True
B) False

Correct Answer

verifed

verified

Langston steals from MindGames, Inc., ten game players, which Langston sells to Nu2U Games store. Unaware that the players are stolen, Nu2U reconditions them and sells them to Online Distributors, Inc. With the reconditioned drives, Nu2U gives Online Distributors a written statement that disclaims "any and all warranties." MindGames learns that Online Distributors has the players and demands their return. Online Distributors gives the equipment to MindGames and files a suit against Nu2U. Will Online Distributors succeed in its suit? Why or why not?

Correct Answer

verifed

verified

Yes, Online Distributors will succeed in...

View Answer

Jin buys a used car from Klee. Jin knows that Loan Company has a security interest in the car but is not aware that Klee has missed several payments on the loan. Loan repossesses the car. Jin can recover for breach of warranty from


A) Klee but not Loan.
B) neither Klee nor Loan.
C) Loan but not Klee.
D) Klee or Loan.

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

Correct Answer

verifed

verified

Coal Corporation buys a Durable-brand bulldozer from Equipment Inc. Coal is unaware that Finance Company holds a lien against the bulldozer. Finance repossesses the goods. Coal can recover for breach of warranty from


A) Equipment.
B) any of the parties.
C) Durable.
D) Finance.

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

Correct Answer

verifed

verified

In a sale of camping equipment from Outdoor Outfitters to Pedro, a consumer, if the parties have not agreed to limit or modify the remedies available, on a breach of warranty


A) the buyer has no recourse against the seller.
B) rescission of the parties' agreement is the only remedy.
C) the buyer can sue to recover damages.
D) repair or replacement is the only option.

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

Correct Answer

verifed

verified

If a creditor repossesses goods from a buyer who bought the goods knowing they were subject to a prior claim, the buyer can recover from the seller for breach of warranty.

A) True
B) False

Correct Answer

verifed

verified

In determining the reasonableness of a buyer's reliance on a seller's statement purported to be an express warranty, it can be considered that a reasonable person is more likely to rely on


A) an expression of puffery.
B) a feature asserted to be "always" or "never."
C) an oral statement by a salesperson.
D) a written statement in an ad.

E) A) and D)
F) A) and C)

Correct Answer

verifed

verified

An action for breach of warranty accrues when


A) the seller or lessor tenders delivery of the goods.
B) the buyer or lessee is made aware of the breach.
C) the non-breaching party notifies the breaching party of the cause.
D) the action is commenced.

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

Correct Answer

verifed

verified

Bike Shop sells a trail bike to Cian. When Cian rides the bike, the frame breaks apart. The cause is something that Bike Shop did not know about and could not have discovered. This is a breach of


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

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

Correct Answer

verifed

verified

Singh, a consumer, leases sheet music from Tunes Inc. for a public performance. United Music Corporation, which holds a copyright on the music, sues Singh to stop the performance without a royalty payment. Singh fails to notify Tunes of the suit within a reasonable time. The lessee


A) can sue the lessor to recover the expenses of the suit.
B) loses any remedy against the lessor for liability established in the suit.
C) can raise the failure to notify as a defense in copyright holder's suit.
D) can assert this failure to delay the litigation, but it is not a defense.

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

Correct Answer

verifed

verified

To create an express warranty, a reasonable buyer must regard a seller's representation of fact-found, for example, in an ad-as part of the basis of the bargain.

A) True
B) False

Correct Answer

verifed

verified

Fatima asks Gianni, a salesperson for Hues & Colors, for a gallon of paint of a certain color and suitable for interior walls. Gianni sells her a gallon of interior paint of a different color. Gianni has breached


A) an implied warranty of fitness for a particular purpose.
B) the implied warranty of merchantability.
C) an implied warranty for the ordinary purpose of the goods.
D) no warranty.

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

Correct Answer

verifed

verified

A buyer who refuses to inspect goods when requested by the seller assumes the risk that the goods are defective.

A) True
B) False

Correct Answer

verifed

verified

Every seller is required to give a written warranty for consumer goods in a single document in "readily understandable language."

A) True
B) False

Correct Answer

verifed

verified

Goods that are reasonably fit for the ordinary purposes for which such goods are used are automatically sold free of any implied warranties.

A) True
B) False

Correct Answer

verifed

verified

A neighbor selling her snow blower at a garage sale does not make an implied warranty of merchantability because she is not in the business of selling goods of the kind.

A) True
B) False

Correct Answer

verifed

verified

A sales contract for a new car states that the vehicle is "warranted to be free from defects for 48,000 miles or forty-eight months, whichever occurs first." This statement creates


A) an express warranty but not an implied warranty.
B) an implied warranty but not an express warranty.
C) an express warranty and an implied warranty.
D) no warranty.

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

Correct Answer

verifed

verified

Glass Company and competitive merchants who deal in goods of the same kind assert that their products are reasonably fit for the ordinary purposes for which such goods are used. This is


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

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

Correct Answer

verifed

verified

Showing 21 - 40 of 72

Related Exams

Show Answer