Chapter 16: Homework

Warranty: a garuntee by the seller or manufacturer that the good is not defective. Thisstartegyis used to promote sales by creating consumer confidence. The Uniform Commercial Code classifies warranties into two categories (1) Express (2) Implied

Manufacturers of goods pass on product warranties to retilers who then offer it to there customers. Manufacturers usually offer express warranties to there customers to build customer confidence.

I. Express Warranties: are warranties that are clearly stated orally or in writing by a manufacturer or seller. They are created in any of 3 ways: (1) A statement or fact or promise made by the seller (2) Description of the good (3) Demonstration through the use of a sample or model

  • Statement of Fact or Promise Made by the Seller- any oral or written statement or promise made by the seller constitutes an express warranty

1. The words of warranty or garuntee need not to be spoken or appear in any written documents tocreate an express warranty.

2. May be a statement of an existing fact or a promise of soemthing that may happen.

3. Written warranties should be in clear understandable terminolgy.

4. Any oral statements should be put into writing prior to entering into contract (parol evidence rule).

5. Opinionsof the seller regarding a good is not considered a warranty. This is called “puffery” or sales talk.

  • Description of Goods- when a description is made as a part of the transaction, an express warranty is created. The warranties that the good will the same as described.
  • Sample or Model- when a sample or is used in the sale of a good an express warranty is created. The good must be the same as shown in sample.
  • Express Warranty Protection for Consumers- without proper clarification consumers might think the guarantee or warranty mentioned with productscover the entire product. T
    Question #1 (3 points)
    The warranty of merchantability applies to nonmerchants as well as merchants.

    Your answer:

    False Wrong Correct

    Question #2 (3 points)
    The word “guaranteed” on a product means it has adequate protection.

    Your answer:

    True Wrong Incorrect

    Correct answer:

    False

    Question #3 (3 points)
    When stolen goods are sold to an innocent purchaser, the true owner is entiled to reaturn of the goods.

    Your answer:

    True Wrong Correct

    Question #4 (3 points)
    A warranty exists only between people who are in privity of contract.

    Your answer:

    False Wrong Correct

    Question #5 (3 points)
    Sellers are never allowed to exclude warranties

    Your answer:

    False Wrong Correct

    Question #6 (3 points)
    A limited warranty gives limited information.

    Your answer:

    False Wrong Correct

    Question #7 (3 points)
    the term “lifetime guarantee” may mean guarantee for the lifetime of either the product or the owner.

    Your answer:

    True Wrong Correct

    Question #8 (3 points)
    To succeed in a claim for breach of warranty the buyer must notify the seller of the defect withtin a reasonable time after it is discovered.

    Your answer:

    True Wrong Correct

    Question #9 (3 points)
    Expressed warranties are often found in sales brochures, circulars and advertisements.

    Your answer:

    False Wrong Incorrect

    Correct answer:

    True

    Question #10 (3 points)
    When a seller states an opinion about a product, a warranty is created.

    Your answer:

    False Wrong Correct

    Question #11 (3 points)
    Expressed warrinties need not include formal words such as warranty or guarantee.

    Your answer:

    False Wrong Incorrect

    Correct answer:

    True

    Question #12 (3 points)
    Oral statements may be used in court to superesdee written statement.

    Your answer:

    False Wrong Correct

    Question #13 (3 points)
    The gurantee that the seller’s product is not defective and is suitable for intended use is the

    Your answer:

    warranty Wrong Correct

    Question #14 (3 points)
    The law requiring that written express warranties on products vosting more thant $10 meet certain requirments is the

    Your answer:

    Magnusson-Moss Warranty Act Wrong Correct

    Question #15 (3 points)
    Goods must be fit for ordinary purposes under the implied warranty of

    Your answer:

    fitness for a paticular purpose Wrong Incorrect

    Correct answer:

    merchantability

    Question #16 (3 points)
    A warranty that promises to fix or replace a defective product free of charge for a certain time period is called a(n)

    Your answer:

    Full Warranty Wrong Correct

    Question #17 (3 points)
    The federal agancey that ensures fair economic practice among businesses is the

    Your answer:

    Federal Trade Commision Wrong Correct

    Question #18 (3 points)
    A guarntee of quality imposed by law and not in writing is a(n)

    Your answer:

    implied warranty Wrong Correct

    Question #19 (3 points)
    A guarantee that goods are free of financial obligation is called a

    Your answer:

    warranty of privity Wrong Incorrect

    Correct answer:

    warranty for a particular purpose

    Question #20 (3 points)
    A warranty that provides restricted protection is called a

    Your answer:

    limited warranty Wrong Correct

    Question #21 (3 points)
    An exclusion to the implied warranty of fitness for a particular purpose must be written and

    Your answer:

    conspicuous Wrong Correct

    Question #22 (3 points)
    An oral statment of fact or promise consitiutes

    Your answer:

    an expressed warranty Wrong Correct

    Question #23 (3 points)
    Any description of the goods that is part of the transaction creates a(n) _________ warranty

    Your answer:

    expressed Wrong Correct

    Question #24 (1 point)
    Another name for warranty is ________

    Your answer:

    guarantee Wrong Correct

    Question #25 (1 point)
    The word ___________ must be mentioned in any exclusion of that warranty.

    Your answer:

    excluded Wrong Incorrect

    Correct answer:

    merchantability

    Question #26 (3 points)
    Implided warranties may not be ____________ if a seller makes a written express warranty to a consumer.

    Your answer:

    implied Wrong Incorrect

    Correct answer:

    excluded

    Question #27 (3 points)
    If a breach of warranty occurs and rhw seller does not correct the situation, the buyer may bring a claim for _________.

    Your answer:

    damages Wrong Correct

    Question #28 (3 points)
    Any written warranty on a consumer product costing more thant _________ must be labeled either full or limited.

    Your answer:

    $10 Wrong Correct

    Question #29 (3 points)
    When the product carries a ________ warranty, read the warranty carefully to determine  what the warranty provides.

    Your answer:

    limited Wrong Correct

    Question #30 (3 points)
    The one who makes the guarantee is called the __________

    Your answer:

    guarantor Wrong Correct

    Question #31 (3 points)
    An expressed warranty is created by a promise or statement of fact, a description, or the use of a(n)_____________

    Your answer:

    sample Wrong Correct

    Question #32 (3 points)
    The _________________ garantees that the transfer of goods being sold is rightful.

    Your answer:

    warranty of title Wrong Correct

    Question #33 (3 points)
    Manufacturers give _________ warranties to retailers.

    Your answer:

    merchantability Wrong Incorrect

    Correct answer:

    implied

    Question #34 (3 points)
    Terri Baumann need a strong bookcase for her collection of rare books. She went to Harv Kellogg’s furniture store and told Kellogg she needed a bookcase that would support several hundred pounds of books. Kellogg sold her a walnut bookcase and told her it would do the job. Two days later the bookcase collapsed under the weight of the books. Baumann wants her money back. Will she succeed in a lawsuit against Kellogg.

    Your answer:

    A warranty of fitness for particular purpose is created when the seller knows about the particular purpose for which goods are needed. Wrong Correct

    he DTC has guidelines to prevent consumer abuse.

 

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