Business Law Chapter 14

The warranty of merchantibility applies to nonmerchants as well as merchants.

• true

• false

The word "guaranteed" on a product means it has adequate protection.

• true

• false

When stolen goods are sold to an innocent purchaser, the true owner is entitled to return of the goods.

• true

• false

A warranty exists only between people who are in privity of contract.

• true

• false

A limited warranty gives limited information.

• true

• false

The law requiring that written express warranties on products costing more than $10 meet certain requirements is the

• parol evidence rule

• Right of Warranty Law

• Nader-Clayton Warranty Act

• Maguson-Moss Warranty Act

Goods must be fit for ordinary purposes under the implied warranty of

• merchantibility

• title

• fitness for a particular purpose

• privity

A guarantee of quality imposed by law and not in writing is a(n)

• implied warranty

• limited warranty

• oral warranty

• express warranty

A guarantee that good are free of financial obligation, or lien, is called a

• limited warranty

• warranty of merchantibility

• warranty of privity

• warranty of title

An oral statement of fact or promise constitutes

• no warranty

• an implied warranty

• an express warranty

• a limited warranty