AGECON28 Midterm Examination – Extracted Questions

A product warranty is an assurance by the buyer that he or she will pay valid consideration for a product.

• True

• False

An express warranty is created when a seller makes specific representations (oral or in writing) concerning the quality, condition, description, or performance potential of goods.

• True

• False

Statements of puffery made during the bargaining process are recognized by courts as express warranties.

• True

• False

Advertisements are an offer to commence negotiations.

• True

• False

A lease is a contract for the possession of something and not a contract for the ownership of something.

• True

• False

An implied warranty of merchantability arises in every sale or lease by a merchant who deals in goods of the kind sold or leased.

• True

• False

When a buyer relies on a seller to select a product suitable for the buyer’s purpose, and the seller does not furnish a suitable product, the seller may be liable for breaching the implied warranty of fitness for a particular purpose.

• True

• False

The Legislative Branch of the U.S. Government interprets the law.

• True

• False

A negotiable instrument can be a promissory note.

• True

• False

When personally served with a complaint, the named defendant generally has 65 days to file a responsive pleading prior to being defaulted.

• True

• False