Chapter 21 Quiz

Which of the following is a correct statement regarding express​ warranties?

• It is not necessary to use formal words to create an express warranty.
• An express warranty must be in writing.
• An express warranty cannot be made by spoken words.
• An express warranty cannot be inferred from the​ seller's conduct.
• An express warranty cannot be made by mistake.

Which of the following is an INCORRECT statement regarding express​ warranties?

• Express warranties are often found in advertisements.
• Lessees can recover for breach of an express warranty if the warranty induced the lessee to lease the product.
• Sellers are required to make express warranties.
• Buyers can recover for breach of an express warranty if the warranty induced the buyer to purchase the product.
• ​Generally, express warranties are made to entice consumers and others to buy or lease products.

Jerry, a car​ salesperson, warrants that a used car has been driven only​ 20,000 miles. If​ true, that would make the car worth​ $20,000. Jerry gives the buyer a​ "good deal" and sells the car for​ $16,000. Unfortunately, the car was worth only​ $10,000 because it had actually been driven​ 100,000 miles. If the buyer discovers that the car actually has​ 100,000 miles and Jerry knew​ that, _____.

• the buyer can recover​ $10,000 ($20,000 warranted value minus​ $10,000 actual​ value)
• the buyer can recover​ $4,000 (the difference between​ $20,000 value and​ $16,000 price​ paid)
• the buyer may not recover anything because Jerry gave them a good deal
• the buyer may not recover anything because Jerry was just puffing
• the buyer can recover​ $6,000 (the difference between​ $16,000 price paid and​ $10,000 actual​ value)

​Jerry, a car​ salesperson, tells Mauricio that​ "this is the best used car on the​ lot." If Mauricio drives the car off the lot and it​ dies, Mauricio can​ _____.

• recover the full value of the car
• sue for breach of warranty of good title
• sue for breach of warranty of no security interests
• sue for breach of express warranty
• recover nothing because the statement was mere puffery

The following is an example of an implied​ warranty:

• ​"This car will go 100 miles per​ hour."
• ​"This house paint will last at least five​ years."
• That the goods conform to a promise on the label
• ​"This is the best used car in​ town."
• ​"This painting is worth a​ fortune."

The most common forms of implied warranties are the implied warranty of​ ________, the implied warranty of​ _______, and the implied warranty of​ ________.

• fitness for human​ consumption; fitness for a particular​ purpose; description
• fitness for human​ consumption; fitness for a particular​ purpose; affirmation of fact
• ​merchantability; fitness for human​ consumption; description
• ​merchantability; fitness for human​ consumption; fitness for a particular purpose
• ​merchantability; fitness for human​ consumption; affirmation of fact

Which of the following is an example of​ puffery?

• ​"This car will go 100 miles per​ hour."
• ​"This salad contains no nut​ products."
• ​"This car has​ 20,000 miles on​ it."
• ​"This painting is worth a​ fortune."
• ​"This car has been inspected by a state car​ inspector."

​"The goods must be fit for the ordinary purposes for which they are​ used," is an example of​ a(n) ________.

• express warranty
• implied warranty of fitness for a particular purpose
• implied warranty of fitness for human consumption
• warranty disclaimer
• implied warranty of merchantability

​"The goods must be of an even​ kind, quality, and quantity within each​ unit," is an example of​ a(n) ________.

• express warranty
• implied warranty of merchantability
• implied warranty of fitness for a particular purpose
• implied warranty of fitness for human consumption
• warranty disclaimer

"The goods must be adequately​ contained, packaged, and​ labeled," is an example of​ a(n) ________.

• express warranty
• implied warranty of fitness for a particular purpose
• warranty disclaimer
• implied warranty of merchantability
• implied warranty of fitness for human consumption