Chapter23 Warranties and Product Liablity

Chapter23 Warranties and Product Liablity - MULTIPLE CHOICE...

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MULTIPLE CHOICE QUESTIONS A1. City Car Company and Dave’s Autos enter into a contract for a sale of motor vehicles. City assures Dave’s that it has valid title to the vehicles. Under the UCC, a warranty of title arises a. automatically in most sales contracts. b. only if the buyer asks for such a warranty. c. only if the seller expresses such a warranty. d. only in conjunction with lease contracts, not sales contracts. Inc. The most important factor in determining whether an express war- ranty is created is whether a. Sari expresses to Terrific what she wants warranted. b. Sari’s desire for the SUV becomes part of her motivation to deal. c. Terrific expresses to Sari what it expects of its customers. d. Terrific promise becomes part of the basis of the bargain. “This is the best car I’ve ever seen.” This statement is a. an express warranty. b. an implied warranty. c. a warranty of title. d. puffing. the kind leased. Under the UCC, an implied warranty of merchantability arises 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. A5. Dependable Appliances, Inc., and Elain enter into a contract for a sale of
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kitchen appliances. Dependable, a merchant who deals in goods of the kind sold, notes that its goods come with an implied warranty of merchantability. Under the UCC, this means that the goods are reasonably a. fit for the buyer’s particular purpose. b. fit for the ordinary purpose for which such goods are used. c. suitable for resale at an acceptable price.
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This note was uploaded on 05/18/2011 for the course BUSINESS 2041 taught by Professor Miller during the Fall '08 term at DeAnza College.

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Chapter23 Warranties and Product Liablity - MULTIPLE CHOICE...

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