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CAF-LAW-CH3U2

Total questions: 86

Worksheet time: 43mins

Name
Class
Date
1.

A stipulation essential to the main purpose of the contract is called:

a)

Warranty

b)

Guarantee

c)

Condition

d)

Representation

2.

Under Section 11, stipulation as to time of payment is generally:

a)

Of the essence of contract

b)

Not of the essence of contract

c)

Void

d)

A warranty

3.

Stipulation as to time of delivery is usually:

a)

Warranty

b)

Not essential

c)

Essence of contract

d)

Invalid

4.

A warranty is a stipulation:

a)

Essential to main purpose

b)

Collateral to main purpose

c)

Optional

d)

Not enforceable

5.

Breach of condition gives right to:

a)

Damages only

b)

Repudiation only

c)

Repudiation + damages

d)

None

6.

Breach of warranty gives right to:

a)

Reject goods

b)

Repudiate contract

c)

Claim damages only

d)

Rescind contract

7.

A stipulation called “warranty” in contract may actually be a condition depending on:

a)

Buyer’s intention

b)

Seller’s intention

c)

Construction of contract

d)

Market usage

8.

When buyer waives performance of condition, breach will be treated as:

a)

Condition

b)

Warranty

c)

Rejection

d)

Voidable

9.

Non-severable contract + acceptance of goods → condition becomes:

a)

Valid

b)

Void

c)

Warranty

d)

Illegal

10.

Section 13 relates to:

a)

Condition as to title

b)

When condition is treated as warranty

c)

Implied warranties

d)

Caveat emptor

11.

Condition as to title arises under Section:

a)

12

b)

13

c)

14(a)

d)

16

12.

Implied condition as to title means seller must have:

a)

Possession

b)

Ownership/right to sell

c)

Warranty

d)

Lien

13.

Goods sold by description must:

a)

Match sample

b)

Match description

c)

Match brand name

d)

Match price

14.

Description includes:

a)

Size

b)

Place of origin

c)

Mode of packing

d)

All of these

15.

If goods do not correspond to description, buyer may:

a)

Reject goods

b)

Accept with damages

c)

Both (a) & (b)

d)

Neither

16.

Sale by sample requires that buyer must be given:

a)

Free sample

b)

Opportunity to compare bulk with sample

c)

Discount

d)

Warranty of merchantability

17.

Latent defects mean:

a)

Easily noticeable

b)

Hidden defects

c)

Seller’s preference

d)

Patent defects

18.

Sale by sample + description → goods must correspond to:

a)

Sample

b)

Description

c)

Both sample & description

d)

Either

19.

Fitness for purpose applies when:

a)

Buyer relies on his own skill

b)

Buyer relies on seller’s skill

c)

Buyer buys branded goods

d)

Buyer inspects goods

20.

No implied condition of fitness when goods are bought:

a)

Without inspection

b)

Under patent/brand name

c)

From manufacturer

d)

From wholesaler

21.

Condition of merchantability applies when goods are bought:

a)

By sample

b)

By auction

c)

By description from seller dealing in such goods

d)

Under brand name

22.

Condition of wholesomeness applies to:

a)

Electronics

b)

Vehicles

c)

Eatables

d)

Clothing

23.

Implied warranty of quiet possession arises under:

a)

Sec 12

b)

Sec 13

c)

Sec 14(b)

d)

Sec 17

24.

Buyer getting goods seized by true owner is breach of:

a)

Description

b)

Quality

c)

Title

d)

Merchantability

25.

Warranty against encumbrance arises under:

a)

14(c)

b)

14(b)

c)

17

d)

16

26.

Caveat emptor means:

a)

Let buyer be warned

b)

Let seller beware

c)

No conditions

d)

No warranties

27.

Caveat emptor applies when buyer:

a)

Relies on seller's skill

b)

Specifies purpose

c)

Relies on own skill

d)

Buys by description

28.

Caveat emptor DOES NOT apply when:

a)

Sale under brand name

b)

Goods examined by buyer

c)

Seller conceals defects

d)

Buyer uses goods improperly

29.

If buyer states purpose and seller recommends goods — implied:

a)

Warranty

b)

Condition

c)

Guarantee

d)

No liability

30.

Example: A buys car for touring; car unfit. Remedy?

a)

Damages only

b)

Replace horn

c)

Reject car and refund

d)

No remedy

31.

Sale by sample requires sample to be:

a)

High quality

b)

Identical to bulk in quality

c)

Better than bulk

d)

Lower quality

32.

Implied warranty by usage of trade falls under:

a)

Section 11

b)

Section 16(3)

c)

Section 14(c)

d)

Section 12

33.

Hidden defect detectable by ordinary examination is called:

a)

Hidden but detectable

b)

Patent defect

c)

Latent defect

d)

Identified defect

34.

Seller must disclose danger when goods are:

a)

Expensive

b)

Branded

c)

Dangerous and buyer unaware

d)

Imported

35.

Buyer examining goods removes:

a)

All implied conditions

b)

Latent defect

c)

Defects apparent on examination

d)

Seller's liability completely

36.

For fitness condition, the goods must be of a description:

a)

Seller deals in

b)

Buyer deals in

c)

Manufacturer deals in

d)

None

37.

In sale by description, buyer may reject goods:

a)

Only before delivery

b)

After using completely

c)

If goods do not match description

d)

Never

38.

Merchantability is NOT implied when buyer:

a)

Inspects goods thoroughly

b)

Buys by description

c)

Relies on seller's skill

d)

Is unaware of defects

39.

“Peas cannot be given instead of beans” refers to:

a)

Warranty of title

b)

Description

c)

Sample

d)

Brand name

40.

Buyer relying on trade name removes:

a)

Fitness condition

b)

Description condition

c)

Sample condition

d)

Wholesomeness condition

41.

Caveat emptor exception includes:

a)

Misrepresentation

b)

Patent defects

c)

Buyer's negligence

d)

Buyer's ignorance

42.

Condition can be waived by:

a)

Seller

b)

Buyer

c)

Court only

d)

Government

43.

Bread containing stone violates:

a)

Merchantability only

b)

Wholesomeness + merchantability

c)

Condition of title

d)

Warranty only

44.

Buyer examining sample casually —

a)

Seller liable

b)

No remedy

c)

Full refund

d)

Criminal case

45.

Goods must correspond with BOTH description & sample under:

a)

Sec 12

b)

Sec 15

c)

Sec 16

d)

Sec 17

46.

Seller without title selling goods — buyer can:

a)

Keep goods

b)

Return goods & recover price

c)

Pay penalty

d)

Do nothing

47.

Warranty of quiet possession breached when:

a)

Goods unsafe

b)

Goods defective

c)

True owner disturbs possession

d)

Buyer dislikes goods

48.

Seller hiding defect knowingly violates:

a)

Caveat emptor

b)

Condition as to merchantability

c)

Condition as to fitness

d)

Exception to caveat emptor

49.

Buyer specifying exact size, seller gives different size:

a)

Sample breach

b)

Description breach

c)

Warranty breach

d)

No breach

50.

In sale by sample, defect must be:

a)

Apparent

b)

Latent

c)

Harmless

d)

Imaginary

51.

Patent defects are:

a)

Hidden

b)

Visible

c)

Dangerous

d)

Seller-created

52.

Buyer relies on seller's judgment — implied:

a)

Warranty

b)

Condition

c)

Guarantee

d)

Caveat emptor applies

53.

If buyer accepts goods knowing defect:

a)

Condition converts to warranty

b)

Condition remains

c)

Warranty becomes condition

d)

Contract void

54.

Encumbrance means:

a)

Hidden defect

b)

Third-party claim

c)

Wrong sample

d)

Wrong description

55.

Merchantability includes:

a)

Fitness for ordinary use

b)

Luxury quality

c)

Best grade

d)

No defects ever

56.

Case: False teeth unfit for mouth — applies:

a)

Merchantability

b)

Fitness for purpose

c)

Sample

d)

Brand name

57.

Sale by description applies even if:

a)

Buyer inspects goods

b)

Buyer ignores defects

c)

Seller warns buyer

d)

Buyer pays late

58.

Condition as to title breached if goods are:

a)

Defective

b)

Stolen

c)

Branded

d)

Replaced

59.

If buyer buys by brand name:

a)

Fitness applies

b)

Description applies

c)

Fitness does NOT apply

d)

No rights exist

60.

Example: Milk containing typhoid germs violates:

a)

Warranty

b)

Wholesomeness

c)

Encumbrance

d)

Quiet possession

61.

If goods fail merchantability, buyer may:

a)

Reject

b)

Claim damages

c)

Both

d)

None

62.

Caveat emptor applies if:

a)

Seller misleads

b)

Goods dangerous

c)

Buyer relies on own skill

d)

Purpose told to seller

63.

Shoes containing paper undiscoverable by inspection —

a)

Latent defect

b)

Patent defect

c)

No defect

d)

Brand defect

64.

In non-severable contract, buyer accepting goods results in:

a)

No rights

b)

Condition becomes warranty

65.

Implied warranties can be excluded by:

a)

Express agreement

b)

Fraud

c)

Law

d)

None

66.

Caveat emptor does NOT apply when goods bought:

a)

On advertisement

b)

By description

c)

Without inspection

d)

In auction

67.

Buyer must inform seller purpose when:

a)

Goods used for single purpose

b)

Goods used for multiple purposes

c)

Goods are edible

d)

Goods are branded

68.

When goods sold under patent name:

a)

Fitness condition removed

b)

Wholesomeness removed

c)

Quiet possession removed

d)

All removed

69.

Condition of title cannot be:

a)

Waived

b)

Converted to warranty

c)

Breached

d)

Excluded by usage

70.

Goods with insect infestation violate:

a)

Title

b)

Merchantability

c)

Quiet possession

d)

None

71.

Buyer rejecting goods due to mixed quality violates:

a)

Warranty

b)

Description

c)

Title

d)

Wholesomeness

72.

Warranty of quiet possession ensures buyer is:

a)

Happy

b)

Undisturbed

c)

Refunded

d)

Given discount

73.

Buyer's right in breach of warranty:

a)

Reject goods

b)

Rescind contract

c)

Claim damages

d)

Both a & b

74.

Sample must be:

a)

Better than bulk

b)

Defective

c)

Representative of bulk

d)

Inferior

75.

Buyer must compare bulk with:

a)

Invoice

b)

Price list

c)

Sample

d)

Warranty

76.

Caveat emptor is statutory rule under:

a)

Sec 12

b)

Sec 15

c)

Sec 16

d)

Sec 14

77.

Buyer relying on sample alone removes:

a)

Description rights

b)

Title rights

c)

Merchantability

d)

None

78.

Implied warranty not to disclose dangerous nature applies when seller:

a)

Warns buyer

b)

Fails to warn buyer

c)

Gives discount

d)

Reduces price

79.

Goods bought for specific purpose, seller knows:

a)

Fitness implied

b)

Warranty implied

c)

Description implied

d)

None

80.

Mixing of basmati long & short grain violates:

a)

Condition of sample

b)

Condition of description

c)

Warranty

d)

Brand name

81.

Buyer must examine goods because:

a)

Caveat emptor

b)

Seller's duty

c)

Law requires

d)

Warranty requires

82.

Breach of condition becomes breach of warranty when:

a)

Buyer accepts goods

b)

Seller requests

c)

Market fluctuates

d)

Price reduces

83.

Implied warranty applies even if:

a)

Buyer inspects

b)

Seller unaware

c)

Usage of trade exists

d)

Buyer careless

84.

Fitness condition NOT implied when:

a)

Goods have only one use

b)

Buyer relies on seller

c)

Goods under patent name

d)

Buyer gives purpose

85.

“Let the buyer beware” means:

a)

Seller must warn

b)

Buyer must inspect

c)

Buyer must reject

d)

Seller must replace

86.

Buyer's right where seller conceals defect:

a)

Rescind contract

b)

Claim damages

c)

Reject goods

d)

All of the above

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