Business Law Unit 4

A warranty is an assurance that the article sold will conform to a certain standard or will operate in a certain manner.

• True

• False

The Truth in Lending Act (TILA) was enacted to set safety standards for consumer products

• True

• False

An express warranty applies even if defects are actually known to the buyer, or defects are so apparent that no special skill or ability is required to detect them.

• True

• False

The statement of the seller in which the article sold is warranted or guaranteed is known as an ____

• Express Warranty

• Unconditional Warranty

• Universal Guarantee

• Express Guarantee

Which of the following warranties applies to all sellers?

• Warranty of merchantability

• Warranty of title

• Warranty against infringement

• Warranty of fitnesses for normal use

Caveat emptor means "let the seller beware."

• True

• False

If a retailer discovers that a product being sold is unsafe that information must be reported to the Consumer Preventative Safety Council.

• True

• False

A seller's warranty that the goods shall be delivered free from any security interest or any other lien of which the buyer at the time of making the sales contract had no knowledge is known as a _______.

• Warranty against encumbrances

• Warranty of title

• Warranty of conformity to a description, sample or model

• Warranty of fitness for a particular purpose

Corrective advertising may be ordered by the FTC as a sanction for false and misleading advertising.

• True

• False

Violations of the weights and measures laws are punishable by _____________

• Fine

• Imporsonment

• Both A and B

• None of the options