Chapter 19: "Warranties" Flashcards
To create an express warranty, a seller must formally use the words warranty or guarantee.
a. True
b. False
b. False
Incorrect. To create an expressed warranty, a seller does not have to use such formal words. Rather, it is only necessary that a reasonable buyer would regard the representation as being part of the basis of the bargain.
You go to buy a chainsaw and the salesperson says “This chainsaw could probably cut down a 2,000-year-old redwood in five minutes.” The salesperson has created:
a. nothing, because he is just puffing. b. an express warranty. c. an implied warranty.
a. nothing, because he is just puffing.
The serving of food or drink is treated as a sale of goods subject to the implied warranty of merchantability.
a. True
b. False
a. True
Goods can be merchantable, but at the same time unfit for a particular purpose.
+ hint
a. True
b. False
b. True
Are all goods without defects usable in all circumstances?
An implied warranty of fitness for a particular purpose normally will NOT arise when:
a. the buyer wrote down exactly what the goods were to be used for. b. the seller had reason to know the purpose. c. the buyer never indicated any special purpose, nor was that special purpose obvious.
c. the buyer never indicated any special purpose, nor was that special purpose obvious.
Without evidence to the contrary, when both parties to a sales contract have knowledge of a well-recognized trade custom, the courts will infer that both parties intended for that custom to apply to their contract.
a. True
b. False
a. Tr
ue
Magnuson-Moss Warranty Act
The Magnuson-Moss Warranty Act of 1975Footnote was designed to prevent deception in warranties by making them easier to understand.
The Magnuson-Moss Warranty Act modifies UCC warranty rules to some extent when consumer transactions are involved. The UCC, however, remains the primary codification of warranty rules for commercial transactions.
Under the Magnuson-Moss Act, no seller is required to give a written warranty for consumer goods sold. If a seller chooses to make an express written warranty, however, and the cost of the consumer goods is more than $25, the warranty must be labeled as either “full” or “limited.”
An implied warranty of merchantability and an implied warranty of fitness for a particular purpose, or both, can exist in addition to an expressed warranty.
a. True
b. False
True
Under the UCC, when there are express and implied warranties and they are consistent with one another, they become ____
cumulative
If two warranties on a good are inconsistent,
a. samples take precedence over inconsistent general descriptions. b. samples displace technical specifications. c. general descriptions displace technical specifications. d. implied warranties always displace expressed warranties.
a. samples take precedence over inconsistent general descriptions.
The UCC generally does not prevent warranties to be disclaimed or limited.
a. True
b. False
b. False
There is no implied warranty with respect to defects that a reasonable examination would reveal or defects that are found on examination.
.
If a buyer refuses to examine the goods at the seller’s request that he or she do so, there is no implied warranty with respect to reasonably evident defects.
.
Ultimately, the courts will test warranty disclaimers with reference to the UCC’s unconscionability standards.
.
An action for breach of warranty occurs when the seller tenders deliver, even if the buyer is unaware of the breach at that time.
.
