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Under what type of warranty is the seller obligated to fix or replace a defective product within a reasonable time at no cost to the buyer?


A) full
B) express
C) limited
D) implied

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

Correct Answer

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Federal law requires every product sold to have an express warranty.

A) True
B) False

Correct Answer

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The federal regulation of express warranties:


A) applies only to limited warranties.
B) applies to a seller who makes a written express warranty for a consumer product costing more than $10.
C) requires all express warranties to be full warranties.
D) requires an implied warranty to be designated as either full or limited.

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

Correct Answer

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B

Under the concept of ______,only the original parties to a sales contract could sue each other.


A) exclusivity of contract.
B) privity of contract.
C) privacy of contract.
D) priority of contract.

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

Correct Answer

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A disclaimer of warranties made in the manner specified by the Uniform Commercial Code is not unconscionable.

A) True
B) False

Correct Answer

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If a merchant sells a lawn mower that will not cut any type of grass,there is a breach of the warranty of merchantability.

A) True
B) False

Correct Answer

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An express warranty is a statement of fact about the product that becomes part of the basis of the bargain.

A) True
B) False

Correct Answer

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The right to sue for damages sustained from a defective product is reserved exclusively to the original purchaser of the product.

A) True
B) False

Correct Answer

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Manufacturers who prepare goods to the buyer's specifications are under exceptionally stringent warranty obligations for fitness for a particular use.

A) True
B) False

Correct Answer

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False

A full warranty requires the purchaser to pay for the shipping cost of returning the product for repair.

A) True
B) False

Correct Answer

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False

In most instances,the mere fact that a sale was made gives rise to a(n) :


A) express warranty.
B) limited warranty.
C) implied warranty.
D) full warranty.

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

Correct Answer

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A catalog illustration can become the basis of an express warranty.

A) True
B) False

Correct Answer

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With used or secondhand goods,what is fit for normal use is generally:


A) a higher standard than with new goods.
B) a lower standard than with new goods.
C) the same standard as with new goods.
D) not applicable since the goods are not new.

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

Correct Answer

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An inadequate warning label about a product's dangers can be considered a defective product.

A) True
B) False

Correct Answer

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A seller cannot be held liable for the breach of an express warranty if the seller honestly believed that the warranted statement was true.

A) True
B) False

Correct Answer

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Arthur was looking for a Father's Day gift for his dad,Tony.Tony was a cigar smoker but Arthur was a nonsmoker.Arthur went to a cigar store and was looking around when the proprietor suggested Arthur try a new imported cigar.The proprietor touted this new cigar as "just like the great Cuban cigars." Arthur was reluctant but did light one of the cigars,which had a pleasant aromatic smell and took about five to six minutes to be consumed.On this basis,Arthur bought a box of the cigars and presented them to his father as a gift.When the father smoked one of the cigars,it gave off an acrid smell and was completely consumed in less than two minutes.When Arthur saw this,he was very upset and asked his father to try another.The same situation was repeated with the acrid odor and the cigar burning down very quickly like a cigarette.?After Arthur tried unsuccessfully to return the cigars for a refund,Arthur filed a small claims court action against the store.The case was based on the failure of the purchased cigars to conform to the sample,breach of the implied warranty of merchantability,and the misleading statement "just like the Cuban cigars." Discuss the probable outcome of the case.

Correct Answer

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Depending on the court's interpretation,...

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In order to create an express warranty the seller must use as the words "warrant" or "guarantee."

A) True
B) False

Correct Answer

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A disclaimer or exclusion of the warranty of merchantability will be invalid if:


A) the goods cost $500 or more.
B) the defects in the goods are obvious to all buyers.
C) it is made at the time of the sale.
D) it is not conspicuously set forth in a writing.

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

Correct Answer

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The theories of product liability are mutually exclusive.

A) True
B) False

Correct Answer

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An implied warranty arises automatically from the fact a sale has been made.

A) True
B) False

Correct Answer

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