Question 1

Both warranties and product liability claims are covered by the law of sales,contract law,and the Uniform Commercial Code.

Accepted Answer

False

Question 2

The various provisions of law of sales,contract law,the Uniform Commercial Code,and tort law provide remedies to buyers and users of goods and services,and to third parties,who suffer:
A) physical injuries or financial losses.
B) psychological trauma.
C) loss of consortium.
D) a job loss.

Accepted Answer

The provisions of law mentioned provide remedies to those who suffer physical injuries or financial losses resulting from defective products or services. They do not, however, address psychological trauma, loss of consortium, or job loss.

Question 3

In addition to federal law,consumers are also protected by lemon laws enacted by the individual states.

Accepted Answer

Lemon laws vary by state, and consumers should be aware of the specific laws in their state. These laws typically provide remedies for consumers who have purchased a defective vehicle.

Question 4

Implied warranty of fitness for a particular purpose is sometimes referred to as fitness of purpose.

Accepted Answer

Implied warranty of fitness for a particular purpose is indeed sometimes referred to as fitness of purpose.

Question 5

A(n)____________warranty is a guarantee suggested or inferred from known facts and circumstances.
A) executed
B) expressed
C) implied
D) contingent

Accepted Answer

An implied warranty is suggested or inferred from known facts and circumstances, rather than being explicitly stated or written down. The other choices are not fitting descriptions for this type of warranty.

Question 6

At times,a manufacturer or seller issues statements limiting a warranty to provide less protection than the law requires.Such statements do not have the force of law,and the manufacturer or seller is still responsible for breach of:
A) good faith.
B) guarantee.
C) indemnity.
D) warranty.

Accepted Answer

The statement in the question refers specifically to a warranty, and even if the manufacturer or seller attempts to limit the warranty, they are still responsible for breaching it. Breach of good faith, guarantee, or indemnity are not directly addressed in the statement.

Question 7

The Magnuson-Moss Warranty Act requires that a written warranty be labeled either "short" or "unlimited."

Accepted Answer

The Magnuson-Moss Warranty Act requires warranties to be labeled as "full" or "limited," not "short" or "unlimited."

Question 8

A kind of guarantee or promise made by a manufacturer or seller that the goods and services offered are really what they are claimed to be,or that the goods or services are what a reasonable person has a right to expect,is known as a(n):
A) patronage.
B) custom.
C) warranty.
D) guarantee.

Accepted Answer

The definition best fits the term "warranty," as it is a guarantee or promise made by a manufacturer or seller that the goods and services offered are really what they are claimed to be, or that the goods or services are what a reasonable person has a right to expect. The other options, such as patronage or custom, do not accurately describe this definition.

Question 9

Product liability,covered by tort law,provides consumers and users with remedies when they are injured or suffer property damage as a result of:
A) defective services.
B) defective goods.
C) defective laws.
D) excess tax imposition.

Accepted Answer

Product liability pertains to defective goods or products, not services or laws. Excessive tax imposition is not related to product liability under tort law.

Question 10

Sales talk,or puffing,has the effect of a warranty.

Accepted Answer

Sales talk, or puffing, is considered to be exaggeration and does not have the effect of a warranty. A warranty is a written or spoken promise made by a seller to the buyer that the product or service sold will be free from defects and will perform as stated. Puffing is not a promise and does not create any contractual obligation.

Question 11

The Uniform Commercial Code states that the seller must use formal words such as "warrant" or "guarantee" in order to create an express warranty.

Accepted Answer

The Uniform Commercial Code does not require specific formal words to create an express warranty. Any affirmation of fact or promise made by the seller to the buyer regarding the goods can create an express warranty, regardless of the exact language used.

Question 12

A seller or manufacturer has significant legal responsibility only to buyers and users of goods and services,but not to the third parties.

Accepted Answer

Sellers and manufacturers can have legal responsibility towards third parties under certain circumstances such as product liability, negligence, and intentional harm. For example, if a faulty product causes harm to someone who is not the buyer or user of the product, the seller or manufacturer can be held legally responsible.

Question 13

Implied warranties can relate to either the title or the quality of goods.

Accepted Answer

Implied warranties can relate to either the title (implied warranty of title) or the quality (implied warranty of merchantability) of goods.

Question 14

Express warranties can be made in many ways,both orally and in writing,including by promise,description,sample,or model.

Accepted Answer

Express warranties can indeed be made in many ways, both orally and in writing, including by promise, description, sample, or model.

Question 15

The law dealing with warranties is intended to protect the general public,but it has also limited the seller's obligations and responsibilities.

Accepted Answer

The law on warranties sets certain standards for seller's obligations and responsibilities to protect consumers, however, there are limitations to these obligations and responsibilities.

Question 16

If a written warranty is vague and indefinite,the court may apply the custom of the marketplace or what such a warranty usually means in similar transactions.

Accepted Answer

This is known as the "doctrine of trade usage" and is a way to interpret unclear warranty terms based on customary practices in the relevant industry or market.

Question 17

In an effort to limit the effect of express warranties,some sellers put specific limitations in the warranty.

Accepted Answer

This is true. Sellers may limit the effect of an express warranty by including specific limitations in the warranty. These limitations may include restrictions on the duration or scope of the warranty, or require certain conditions to be met in order for the warranty to be valid.

Question 18

,a merchant is anyone who deals in goods of the kind being sold in the ordinary course of business,or who presents himself or herself as having the skills or knowledge relating to the goods.

Accepted Answer

This is the legal definition of a merchant as per the Uniform Commercial Code (UCC).

Question 19

A buyer cannot refuse delivery of goods even if the goods are not the same as described by the seller or do not conform to the sample or model used by the seller to effect the sale.

Accepted Answer

A buyer has the right to refuse delivery of goods that do not match the description given by the seller, or those that do not conform to the sample or model used during the sale. This falls under the doctrine of caveat emptor, where the buyer bears the responsibility of examining the goods before purchasing.

Question 20

An implied warranty of fitness does not exist if the buyer does not expressly inform the seller of his or her intended use of the merchandise.

Accepted Answer

An implied warranty of fitness exists regardless of whether the buyer informs the seller of the intended use of the merchandise. This warranty implies that the product is fit for its ordinary purpose, and if it is not, the seller may be held liable for any resulting harm to the buyer.

Quiz 18: Warranties