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BLAW23 - Chapter 23 War ranties and P roduct L iability A1...

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Chapter 23 Warranties and Product Liability 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. B1. Merchant Supply Company and National Discount Stores enter into a contract for a lease of cash registers. Merchant assures National that it has valid title to the goods. Under the UCC, a warranty of title arises a. automatically in most lease contracts. b. only if the lessee asks for such a warranty. c. only if the lessor expresses such a warranty. d. only in conjunction with sales contracts, not lease contracts. A2. Sari  buys   a   new   sport   utility   vehicle   (SUV)  from   Terrific  Cars   &  Trucks, Inc.  The most important factor in determining whether an  express warranty 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. B2. Parker, a salesperson for Quality Textiles, Inc., shows  Rosa, a fabric  buyer for Style Clothing Company, samples of cloth, stating that any  shipment will match the samples. This statement is a. an express warranty. b. an implied warranty. c. a warranty of title. d. puffing.
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A3. Olga, a salesperson for Pre-owned Cars & Trucks, Inc., tells Quincy,  “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. B3. Oceanic Vessels, Inc., and Pacific Harbor Company enter into a contract for a sale of a boat. Oceanic is a merchant who deals in goods of the kind sold. The goods are defective. Under the UCC, the implied warranty of merchantability is breached a. only if Oceanic did not know about and could not have discovered the defect. b. only if Oceanic did not know about the defect. c. only if Oceanic knew about or could have discovered the defect. d. regardless of what Oceanic knew or could have discovered. A4. Trucks & Trailers, Inc. (T&T), and United Delivery Service enter into a contract for a lease of trucks. T&T is a merchant who deals in goods of 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.
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