Chapter 23 Warranties

Question 1

Good title

Answer 1

In most sales, sellers warrant that they have good and valid title to the goods sold and that the transfer of the title is rightful

Question 2

Liens

Answer 2

Encumbrances (claims, charges, or liabilities)

Question 3

No liens

Answer 3

Protects buyers and lessees who are unaware of any encumbrances against goods at the time the contract is made

Question 4

Security interest

Answer 4

Interest in the goods that secures payment or performance of an obligation

Question 5

No infringements

Answer 5

A merchant-seller or lessor warrants that the buyer or lessee takes the goods free of infringements from any copyright, trademark, or patent claims of a third person

Question 6

Affirmation of fact or promise

Answer 6

E.g. D.J. Vladick, a salesperson at Home Depot, tells a customer, “These drill bits will easily penetrate stainless steel—and without dulling.”

Question 7

Merchantable

Answer 7

Reasonably fit for the ordinary purposes for which such goods are used

Question 8

Lemons

Answer 8

Defective automobiles

Question 9

Magnuson-Moss warranty act

Answer 9

Designed to prevent deception in warranties by making them easy to understand