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CAF LAW CH-2U2 CONDITIONS & WARRANTIES

Total questions: 25

Worksheet time: 16mins

Name
Class
Date
1.

Teri purchased a new car and expects for the entertainment system to work smoothly. Which warranty is Teri expecting to be fulfilled?

a)

express

b)

full

c)

limited

d)

implied

2.
A customer buys a CD player and receives a printed warranty card stating the action the company will take if the CD player does not work properly. This is an example of which type of warranty?
a)
Express
b)
Implied
3.

Which is an example of an implied terms?

a)
 customer buys a toaster and assumes it will toast bread.
b)
A jacket's hang tag states that the fabric is pure wool. 
c)
A television's label promises a full refund if the set doesn't work.
d)

A loan contract.

4.
Implied warranties are created by
a)
demonstration.
b)
writing.
c)
law.
d)
oral statements.
5.
Tina buys a new set of headphones that comes with no written warranty. When she tries them out at home, the sound is muffled. The warranty that is broken is the
a)

express terms.

b)

terms of fitness for a particular purpose.

c)

implied condition of title.

d)

Goods must be of merchantable quality

6.

Bo unknowingly buys a stolen MP3 player from Skylar. The term that has been broken is the

a)

implied condition in sale of description

b)

goods must be of merchantable quality

c)

implied condition as to title

d)

goods must be reasonably fit for purpose

7.

Warranties are used to denote a LESSER IMPORTANCE term

a)

True

b)

False

8.

A term of a contract which is of such vital importance that it goes to the root of the transaction; essentially it is a major term of the contract.

a)

Conditions

b)

Warranties

9.

Breach of a _______________ gives rise to the claimant's right to terminate the contract (treat the contract as discharged) and claim damages for any loss.

a)

Condition

b)

Warranty

10.

These are conditions that are not verbally discussed but are expected to be a part of the contract.

a)

Expressed Condition

b)

Implied Condition

11.

These are conditions that are clearly defined and agreed to.

a)

Expressed Condition

b)

Implied Condition

12.

A warranty is a guarantee as to the quality of the goods or services sold that are included in the contract.

a)

True

b)

False

13.

A stipulation which is essential to the main purpose of the contract is called-

a)

Warranty

b)

Guarantee

c)

Condition

d)

Indemnity

14.

Breach of condition gives the aggrieved party-

a)

Right to sue for damages

b)

Right to repudiate the contract

c)

Both (a) and (b)

d)

None of these

15.

Condition may be treated as a warranty when there is –


a)

Waiver of the condition by the buyer

b)

The buyer elects to treat a breach of condition as a breach of warranty

c)

Acceptance of goods by the buyer in case of non-severable of the contract of sale

d)

All the above

16.

The doctrine of Caveat Emptor does not apply, when

a)

the goods are bought by sample.

b)

the goods are bought by sample as well as description.

c)

The exact purpose is known to the seller and is a regular dealer

d)

all of the above

17.

Which of the following is not an implied condition in a contract of sale?

a)

condition as to title.

b)

condition as to description

c)

condition as to free from encumbrance.

d)

condition as to sample.

18.

Which one of the following is not an implied warranty


a)

warranty as to undisturbed possession.


b)

warranty as to existence of encumbrance.


c)

disclosure of dangerous nature of goods.


d)

warranty as to quality or fitness by usage of trade.

19.

In case of goods sold by sample, the goods should correspond with the sample otherwise

a)

buyer can reject the goods.

b)

buyer cannot reject the goods.

c)

the contract is automatically terminated.

d)

seller is liable to punishment.

20.

M, a shopkeeper, sold a Television set to N, who purchased it in good faith. The set had some manufacturing defect and it did not work after a few days in spite of repairs. In this case, the television was not merchantable as it was not fit for ordinary purpose


a)

the buyer has no right to reject the television.


b)

the buyer has the right to reject the television and to have refund of the price.

c)

both of the above.


d)

none of the above [(a) & (b)]

21.

A warranty is stipulation

a)

Essential to the main purpose of the contract

b)

Collateral to the main purpose of the contract

c)

Very important to the seller

d)

Very important to the buyer

22.

In a sale by sample and description, there is an implied condition

a)

That bulk of the goods correspond with the sample

b)

That bulk of goods must correspond to the description as well as the sample thereof

c)

The bulk of goods must correspond either to the description or to the sample

d)

The bulk of goods must correspond to the description only

23.

________ you complete all the graded assignments, you will not pass the course.

a)

UNLESS

b)

IF

c)

WHETHER OR NOT

d)

OTHERWISE

24.

John always comes to class late _______ there is a test.

a)

WHETHER OR NOT

b)

EVEN IF

c)

OR ELSE

d)

UNLESS

25.
An example of a unilateral mistake would be:
a)
the other party told you an untrue statement
b)
the other party knew something was wrong but didn't tell you
c)
the other party hoped you wouldn't discover the lie
d)
you signed a contract before reading