Ch23-TB1-WBL-10e

Ch23-TB1-WBL-10e - Chapter23 WarrantiesandProductLiability

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Chapter 23 Warranties and Product Liability N.B.:   TYPE  indicates that a question is new, modified, or unchanged, as  follows. N A question  new  to this edition of the Test Bank. + A question  modified  from the previous edition of the Test Bank, = A question  included  in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS 1. Warranties of title arise in most sales contracts only when the seller ex- pressly declares that he or she possesses title to the goods. ANSWER: F PAGE: 449 TYPE: = 2. A warranty is an assurance by the buyer to the seller that he or she will  pay valid consideration for a product. ANSWER: F PAGE: 449 TYPE: = 3. Promises   of   fact   made   during   the   bargaining   process   are   not   express  warranties. ANSWER: F PAGE: 450 TYPE: = 4. A warranty against infringement is a promise by the seller that the product  was constructed in a workmanlike manner. ANSWER: F PAGE: 450 TYPE: = 227
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228 TEST BANK 1—UNIT FOUR: DOMESTIC AND INT’L SALES AND LEASE CONTRACTS 5. Advertisements can include express warranties. ANSWER: T PAGE: 450 TYPE: = 6. A  seller must use words such as “warrant” or “guarantee” to make an  express warranty. ANSWER: F PAGE: 450 TYPE: = 7. An implied warranty of merchantability arises in every sale or lease by a  merchant who deals in goods of the kind sold or leased. ANSWER: T PAGE: 451 TYPE: = 8. A seller must provide a written warranty for consumer goods. ANSWER: F PAGE: 454 TYPE: = 9. A contract cannot contain both a warranty of merchantability and a war- ranty of fitness for a particular purpose. ANSWER: F PAGE: 455 TYPE: = 10. A merchant can disclaim an implied warranty of merchantability. ANSWER: T PAGE: 456 TYPE: = 11. A product liability action may be based on warranty theory. ANSWER: T PAGE: 458 TYPE: = 12. To succeed in a product liability suit based on negligence, a plaintiff must  prove that there was a failure to exercise due care. ANSWER: T PAGE: 458 TYPE: = 13. Privity of contract between the plaintiff and the defendant is required to  bring a product liability suit based on negligence. ANSWER: F PAGE: 459 TYPE: = 14. Strict liability is liability without fault.
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CHAPTER 23: WARRANTIES AND PRODUCT LIABILITY 229 ANSWER: T PAGE: 460 TYPE: = 15. One requirement for a product liability suit based on strict liability is a  failure to exercise reasonable care. ANSWER: F PAGE: 460  TYPE: = 16. To succeed in a product liability suit based on strict liability, a plaintiff  must prove that a product was in a defective condition when the defendant  sold it. ANSWER:
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This note was uploaded on 10/15/2010 for the course ACCT ACCT40 taught by Professor Birnbaum during the Fall '08 term at CUNY Brooklyn.

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Ch23-TB1-WBL-10e - Chapter23 WarrantiesandProductLiability

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