Question 1

Good Tire Company and Hiway Auto Service enter into a contract for a sale of tires.Good Tire is a merchant who deals in goods of the kind sold.Under the UCC,an implied warranty of merchantability arises

Accepted Answer

A)  automatically in sales contracts.
B)  only if the buyer asks for it.
C)  only if the seller does not expressly disclaim it.
D)  only in conjunction with lease contracts,not sales contracts.E) A) and B)
F) A) and C)

Question 2

Jack's Pet Houses,Inc.sells shelters for animals under "limited" warranties.Under the Magnuson-Moss Warranty Act,this means that the warranties on shelters from Jack's Pet Houses

Accepted Answer

A)  do not meet one of the requirements of a full warranty.
B)  are only good for one year.
C)  are illegal.
D)  are oral.E) C) and D)
F) B) and C)

Question 3

Sellers or lessors are liable only for products that are reasonably dangerous.

Accepted Answer

A) True 
 B)False

Question 4

Implied warranties can arise from a "course of dealing."

Accepted Answer

A) True 
 B)False

Question 5

Fancy's Feedlot orders one hundred sacks of cattle feed from Bovine Feeders,Inc.Each bag has the words "Twenty percent protein" printed on the front.This is

Accepted Answer

A)  an express warranty.
B)  an implied warranty.
C)  a warranty of title.
D)  puffery.E) None of the above
F) A) and B)

Question 6

Trucks & Trailers,Inc.(T&T) ,and United Delivery Service enter into a contract for a lease of trucks.T&T is a merchant who deals in goods of the kind leased.Under the UCC,an implied warranty of merchantability arises

Accepted Answer

A)  automatically in lease contracts.
B)  only if the lessee asks for it.
C)  only if the lessor does not expressly disclaim it.
D)  only in conjunction with sales contracts,not lease contracts.E) A) and B)
F) A) and C)

Question 7

Jean buys a bike from Mike's Bike Shop.She wants to make sure that there is a warranty of title.Jean

Accepted Answer

A)  does not need to do anything because warranties of title arise automatically in most sales contracts.
B)  must request a written warranty of title.
C)  must request an oral warranty of title.
D)  must request both a written and an oral warranty of title.E) A) and B)
F) A) and C)

Question 8

A seller does not have to provide a written warranty for consumer goods.

Accepted Answer

A) True 
 B)False

Question 9

An expression of opinion will usually create a warranty.

Accepted Answer

A) True 
 B)False

Question 10

GR8 Skates Company makes and sells a pair of skates to Hugh.GR8 fails to exercise "due care" to make the skates safe,and Hugh is injured as a result.GR8 is most likely liable for

Accepted Answer

A)  assumption of risk.
B)  knowledgeable use.
C)  negligence.
D)  product misuse.E) A) and B)
F) B) and C)

Question 11

Merchant Supply Company and National Discount Stores enter into a contract for a lease of cash registers.Merchant assures National that it has valid title to the goods.Under the UCC,a warranty of title arises

Accepted Answer

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

Question 12

A warranty of good title means that a seller warrants that he or shehas valid title to the goods and that transfer of the title is rightful.

Accepted Answer

A) True 
 B)False

Question 13

For consumer goods costing more than $25,a written warranty must be labeled "full" or "limited."

Accepted Answer

A) True 
 B)False

Question 14

An implied warranty of merchantability does not arise in every lease by a merchant who deals in goods of the kind leased.

Accepted Answer

A) True 
 B)False

Question 15

The dangers associated with using sharp knives are so commonly known that manufacturers need not warn users of those dangers

Accepted Answer

A) True 
 B)False

Question 16

Big Screen Video Corporation sells high-definition television sets.Under most cir-cum-stances,Big Screen Video will be presumed to have warranted that its title to the TVs is

Accepted Answer

A)  the same as each brand's name.
B)  none of the choices-a warranty of title is not presumed.
C)  good and valid.
D)  the best that money can buy.E) A) and B)
F) A) and C)

Question 17

To succeed in a strict product liability suit,an injured plaintiff must show that a product's defect was the proximate cause of the injury.

Accepted Answer

A) True 
 B)False

Question 18

SurgeStop Company makes electrical cords and other connectors for elec-tronic devices.Rollo files a product liability suit against SurgeStop,alleg-ing a warning defect.In deciding whether to hold SurgeStop liable,the court may consider

Accepted Answer

A)  consumers' general lack of desire to read the product's warnings.
B)  the plaintiff's specific lack of desire to read the product warnings.
C)  the obvious risks of other products.
D)  the obvious risks of this product.E) A) and B)
F) B) and D)

Question 19

General descriptions take precedence over inconsistent samples.

Accepted Answer

A) True 
 B)False

Question 20

William steals a valuable collection of baseball cards from Phillip.William then sells the cards to Darrel,who does not know that the cards are stolen.Phillip discovers that Darrel has the cards.Which of the following best describes the rights and liabilities of the parties involved?

Accepted Answer

A)  Darrel has the right to keep the cards if he compensates Phillip monetarily.
B)  Phillip has the right to reclaim the cards from Darrel,but is liable to Darrel for damages.
C)  Phillip has the right to reclaim the cards from Darrel and William is liable to Darrel for damages.
D)  Darrel has the right to keep the cards without compensating William.E) A) and B)
F) A) and C)

Exam 16: Warranties and Product Liability

General descriptions take precedence over inconsistent samples.

Correct AnswerverifiedShow Answer

The dangers associated with using sharp knives are so commonly known that manufacturers need not warn users of those dangers

Correct AnswerverifiedShow Answer

Sellers or lessors are liable only for products that are reasonably dangerous.

Correct AnswerverifiedShow Answer

Big Screen Video Corporation sells high-definition television sets.Under most cir-cum-stances,Big Screen Video will be presumed to have warranted that its title to the TVs is

Correct AnswerverifiedShow Answer

A warranty of good title means that a seller warrants that he or shehas valid title to the goods and that transfer of the title is rightful.

Correct AnswerverifiedShow Answer

William steals a valuable collection of baseball cards from Phillip.William then sells the cards to Darrel,who does not know that the cards are stolen.Phillip discovers that Darrel has the cards.Which of the following best describes the rights and liabilities of the parties involved?

Correct AnswerverifiedShow Answer

To succeed in a strict product liability suit,an injured plaintiff must show that a product's defect was the proximate cause of the injury.

Correct AnswerverifiedShow Answer

A seller does not have to provide a written warranty for consumer goods.

Correct AnswerverifiedShow Answer

GR8 Skates Company makes and sells a pair of skates to Hugh.GR8 fails to exercise "due care" to make the skates safe,and Hugh is injured as a result.GR8 is most likely liable for

Correct AnswerverifiedShow Answer

Implied warranties can arise from a "course of dealing."

Correct AnswerverifiedShow Answer

An implied warranty of merchantability does not arise in every lease by a merchant who deals in goods of the kind leased.

Correct AnswerverifiedShow Answer

Trucks & Trailers,Inc.(T&T) ,and United Delivery Service enter into a contract for a lease of trucks.T&T is a merchant who deals in goods of the kind leased.Under the UCC,an implied warranty of merchantability arises

Correct AnswerverifiedShow Answer

Merchant Supply Company and National Discount Stores enter into a contract for a lease of cash registers.Merchant assures National that it has valid title to the goods.Under the UCC,a warranty of title arises

Correct AnswerverifiedShow Answer

Jack's Pet Houses,Inc.sells shelters for animals under "limited" warranties.Under the Magnuson-Moss Warranty Act,this means that the warranties on shelters from Jack's Pet Houses

Correct AnswerverifiedShow Answer

Good Tire Company and Hiway Auto Service enter into a contract for a sale of tires.Good Tire is a merchant who deals in goods of the kind sold.Under the UCC,an implied warranty of merchantability arises

Correct AnswerverifiedShow Answer

Fancy's Feedlot orders one hundred sacks of cattle feed from Bovine Feeders,Inc.Each bag has the words "Twenty percent protein" printed on the front.This is

Correct AnswerverifiedShow Answer

SurgeStop Company makes electrical cords and other connectors for elec-tronic devices.Rollo files a product liability suit against SurgeStop,alleg-ing a warning defect.In deciding whether to hold SurgeStop liable,the court may consider

Correct AnswerverifiedShow Answer

An expression of opinion will usually create a warranty.

Correct AnswerverifiedShow Answer

For consumer goods costing more than $25,a written warranty must be labeled "full" or "limited."

Correct AnswerverifiedShow Answer

Jean buys a bike from Mike's Bike Shop.She wants to make sure that there is a warranty of title.Jean

Correct AnswerverifiedShow Answer

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