In sales law, a warranty is an assurance by one party of...

This preview shows page 1 - 3 out of 14 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Financial Reporting, Financial Statement Analysis and Valuation
The document you are viewing contains questions related to this textbook.
Chapter 9 / Exercise 9.19
Financial Reporting, Financial Statement Analysis and Valuation
Wahlen
Expert Verified
BUSINESS LAW 2 QUESTION SET 3 TRUE/FALSE 1. In sales law, a warranty is an assurance by one party of the existence of a fact on which the other party can rely. 2. Warranties of title do not arise in most sales contracts. 3. A warranty of good title means that a seller warrants that he or she has valid title to the goods and that transfer of the title is rightful. 4. In sales law, there is only one type of warranty of title. 5. A lien is an encumbrance on a property to satisfy or protect a claim for payment of a debt. 6. Promises of fact made during the bargaining process are express warranties. 7. A warranty against infringement is a promise by the seller that the product is free from any patent, trademark, or copyright claims of a third person. 8. A seller does not have to use words such as “warrant” to make an express warranty. 9. Only a statement made after a contract is entered into can be an express warranty. 10. An expression of opinion will usually create a warranty. 11. If a seller is an expert and gives an opinion as an expert, then he or she usually creates an express warranty. 12. Puffery creates an express warranty. 13. Goods must be of the highest quality possible to be merchantable. Page 1 of 14
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Financial Reporting, Financial Statement Analysis and Valuation
The document you are viewing contains questions related to this textbook.
Chapter 9 / Exercise 9.19
Financial Reporting, Financial Statement Analysis and Valuation
Wahlen
Expert Verified
14. An implied warranty of merchantability does not arise in every lease by a merchant who deals in goods of the kind leased. 15. A product is unmerchantable if an accident could arise in connection with the goods. 16. Merchants are not required to warrant that the goods they sell are fit for their ordinary purpose. 17. Implied warranties can arise from a “course of dealing.” 18. Express warranties can not be disclaimed in contracts. 19. General descriptions take precedence over inconsistent samples. 20. For consumer goods costing more than $25, a written warranty must be labeled “full” or “limited.” 21. A seller does not have to provide a written warranty for consumer goods. 22. In sales law, product liability is assurance by one party of the existence of a fact on which the other party can rely. 23. A manufacturer’s duty of care extends to the inspection and testing of products bought to incorporate in the final product. 24. A failure to exercise reasonable care is negligence. 25. Under the doctrine of strict liability, people are liable for the results of their acts only if their intentions are malicious. 26. Strict liability depends on privity of contract between an injured party and a seller. 27. 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. 28. To support the imposition of strict product liability, a product must be substantially changed from the time it is sold to the time an injury occurs. Page 2 of 14

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture