Law Chapter 7: Consumer Law and Contracts (Test Review)

The warranty of merchantability applies to non-merchants as well as merchants.

• True

• False

Flora's Flower Shop purchased six new computers and paid to have them installed. The common law of contract applies in this situation.

• True

• False

The cooling-off rule gives you three business days to change your mind about a transaction that was made away from the seller's regular place of business.

• True

• False

The statute of limitations for sales contracts is five years.

• True

• False

A limited warranty gives limited information.

• True

• False

The relaxed UCC rules allow for a sales contract to be made in any manner that shows the parties have reached an agreement.

• True

• False

Goods must be movable to be valid subject matter of a sales contract.

• True

• False

If the seller fails to deliver the goods that were promised, the buyer can buy the goods from someone else and charge the difference in price back to the original seller.

• True

• False

Sales law applies to the sale of goods and property.

• True

• False

When a buyer breaches a sales contract, the seller may cancel the contract.

• True

• False