Chapter 23

Question 1

3 types of title warranties

Answer 1

Good title
No liens
No infringements

Question 2

Good title

Answer 2

When sellers warrant that they have goods and valid title to the goods sold and the transfer of the title is rightful

Question 3

No liens

Answer 3

Protects buyers and lessees who are unaware of any liens (claims, charges, liabilities) against the goods at the time the contract is made

Question 4

No infringements

Answer 4

Arises automatically when the seller or lessor is a merchant

Question 5

Express warranty

Answer 5

A seller’s or lessor’s oral or written promise, ancillary to an underlying sales or lease agreement as to the quality, description, or performance of the goods being sold or leased

Question 6

Implied warranty

Answer 6

A warranty that the law derives by implication or interference from the nature of the transaction or the relative situation or circumstances of the parties

Question 7

Implied warranty of merchantability

Answer 7

A warranty that goods being sold or leased are reasonably fit for the ordinary purpose for which they are sold or leased, are properly packaged and labeled, and are of fair quality. The warranty automatically arises in every sale or lease of goods made by a merchant who deals in goods of the kind sold or leased

Question 8

Implied warranty of fitness for a particular purpose

Answer 8

A warranty that goods sold or leased are fit for a particular purpose. The warranty arises when any seller or lessor knows the particular purpose for which a buyer or lessee will use the goods and knows that the buyer or lessee is replying on the skill and judgement of the seller or lessor to select suitable goods