Ch23-TB2-WBL-10e

Ch23-TB2-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. In sales law, a warranty is an assurance by one party of the existence of a  fact on which the other party can rely. ANSWER: T PAGE: 449 TYPE: N 2. A warranty of title cannot be disclaimed. ANSWER: F PAGE: 450 TYPE: = 3. Only a statement made  after  a contract is entered into can be an express  warranty. ANSWER: F PAGE: 450 TYPE: = 4. An expression of opinion by a seller will not usually create a warranty. ANSWER: T PAGE: 451 TYPE: = 5. A product is unmerchantable if any accident could arise in connection with  the goods. 229
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230 TEST BANK 2—UNIT FOUR: DOMESTIC AND INT’L SALES AND LEASE CONTRACTS ANSWER: F PAGE: 452 TYPE: =
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CHAPTER 23: WARRANTIES AND PRODUCT LIABILITY 231 6. Merchants are required to warrant that the goods they sell are fit for their  ordinary purpose. ANSWER: T PAGE: 453 TYPE: = 7. An express warranty cannot be limited. ANSWER: F PAGE: 454 TYPE: = 8. The Magnuson-Moss Warranty Act modifies UCC warranty rules to some  extent in consumer transactions. ANSWER: T PAGE: 454 TYPE: N 9. A contract can contain both an implied warranty and an express warranty. ANSWER: T PAGE: 455 TYPE: + 10. Express warranties displace inconsistent implied warranties except implied  warranties of fitness for a particular purpose. ANSWER: T PAGE: 456 TYPE: = 11. A manufacturer’s duty of care does  not  extend to the inspection and testing  of products bought to incorporate in the final product. ANSWER: F PAGE: 458 TYPE: = 12. Privity of contract between the plaintiff and the defendant is required to  bring a product liability suit based on any theory. ANSWER: F PAGE: 459 TYPE: N 13. A plaintiff cannot succeed in a suit for negligence against a manufacturer  unless the plaintiff bought the defective good from the manufacturer. ANSWER: F PAGE: 459 TYPE: + 14. The basis for applying strict liability is a manufacturer’s failure to exercise  reasonable care. ANSWER: F PAGE: 460 TYPE: N
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232 TEST BANK 2—UNIT FOUR: DOMESTIC AND INT’L SALES AND LEASE CONTRACTS
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CHAPTER 23: WARRANTIES AND PRODUCT LIABILITY 233 15. There is no liability for a manufacturer who innocently misrepresents the  character or quality of goods. 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-TB2-WBL-10e - Chapter23 WarrantiesandProductLiability

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