Chapter 14 Business Law

A breach of warranty is not a breach of contract.

• true

• false

New drugs cannot be marketed in this country without FDA approval.

• true

• false

Competition is the driving force behind the creation and improvement of products and services.

• true

• false

Product liability laws have increased in recent years to protect injured plaintiffs.

• true

• false

A warranty is a statement about a product’s qualities or performance and therefore is not governed by the UCC.

• true

• false

The federal Magnuson-Moss Warranty Act applies only to written warranties on certain products sold to consumers.

• true

• false

Puffing and warranties are both statements of fact.

• true

• false

A warranty against infringement basically requires that the goods be fit for the ordinary purposes for which such goods are used.

• true

• false

Merchantability requires that any warranty protection that is customary in the trade be extended to all buyers.

• true

• false

A notice of exclusion is a disclaimer.

• true

• false