cheeseman_buslaw7_tif_21

cheeseman_buslaw7_tif_21 - 21 SALESANDLEASEWARRANTIES 1) It...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1) It is not necessary to use formal words such as "warrant" or "guarantee" in order to create an express warranty. Answer: TRUE Diff: 2 Topic: Express Warranties 2) Intent is necessary in order to create an express warranty. Answer: FALSE Diff: 2 Topic: Express Warranties 3) The statement "This car has a six-cylinder engine" is a statement of fact, but not a warranty. Answer: FALSE Diff: 2 Topic: Express Warranties 4) The statement "This house paint will last five years" can be an express warranty. Answer: TRUE Diff: 1 Topic: Express Warranties 5) A model used in connection with selling goods will usually amount to a warranty that the goods will be as the model indicates. Answer: TRUE Diff: 1 Topic: Express Warranties 6) A statement that a trailer has a capacity of 3,000 pounds would be treated as an affirmation of fact and would become a warranty. Answer: TRUE Diff: 2 Topic: Express Warranties 208 SALES AND LEASE WARRANTIES 21
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
7) A statement of opinion is considered to be a warranty. Answer: FALSE Diff: 1 Topic: Express Warranties 8) The statement "This painting is worth $10,000" does not create a warranty. Answer: TRUE Diff: 1 Topic: Express Warranties 9) The statement "This car has an actual mileage of 25,000 miles" is an express warranty. Answer: TRUE Diff: 1 Topic: Express Warranties 10) The term "basis of the bargain" is a test that is strictly applied by the courts as per the UCC. Answer: FALSE Diff: 2 Topic: Express Warranties 11) Manufacturers are liable for express warranties made by wholesalers. Answer: FALSE Diff: 2 Topic: Express Warranties 12) The implied warranty of merchantability requires that goods be fit for the ordinary purposes for which they are intended. Answer: TRUE Diff: 1 Topic: Implied Warranty of Merchantability 13) The implied warranty of merchantability includes a warranty that goods delivered in groups are of a consistent quality. Answer: TRUE Diff: 1 Topic: Implied Warranty of Merchantability 209
Background image of page 2
14) The implied warranty of merchantability applies to the goods themselves, and not to the manner in which they are packaged. Answer: FALSE Diff: 2 Topic: Implied Warranty of Merchantability 15) The warranty of merchantability applies only to sales or leases by merchants. Answer: TRUE Diff: 1 Topic: Implied Warranty of Merchantability 16) Sam is a high school English teacher who holds a garage sale at which he sells an old cordless drill to a neighbor. When the neighbor uses the drill, he is injured because the drill is defective. The neighbor can sue Sam for a breach of the implied warranty of merchantability. Answer: FALSE Diff: 2 Topic: Implied Warranty of Merchantability 17) Tom owns a hardware store at which he sells power tools. He sells a cordless drill to Victor who takes it home and is injured when he uses it, because the drill is defective. Victor can sue Tom for a breach of the implied warranty of merchantability. Answer:
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 21

cheeseman_buslaw7_tif_21 - 21 SALESANDLEASEWARRANTIES 1) It...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online