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| 1 | |
__________ warranties are explicitly stated, whereas __________ warranties are automatically, as a matter of law, injected into the contract. |
| | A) | Express; implied |
| | B) | Implied; express |
| | C) | Full; limited |
| | D) | Limited; full |
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| 2 | |
An __________ carries with it a reasonable expectation of how a product will perform. |
| | A) | Express warranty |
| | B) | Implied warranty of fitness for a particular purpose |
| | C) | Implied warranty of title |
| | D) | Implied warranty of merchantability |
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| 3 | |
All but which of the following satisfies the meaning of the term "merchantable?" |
| | A) | The product is able to pass without objection in the trade or market for similar goods |
| | B) | The product is fit for the ordinary purpose(s) for which such goods are sold |
| | C) | The product is adequately contained, packaged, and labeled as the agreement may require |
| | D) | The product is fit for the buyer's unique needs, such needs have been described to the seller, and the buyer has relied upon the seller's expertise to select a product that will fit the buyer's unique needs. |
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| 4 | |
The implied warranty of fitness for a particular purpose arises when a seller knows (or has reason to know): |
| | A) | Why the buyer is purchasing the goods in question |
| | B) | The buyer is relying on the seller to make an appropriation selection of goods |
| | C) | Both A. and B. |
| | D) | Neither A. nor B. |
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| 5 | |
Which of the following categories of individuals may be third-party beneficiaries of warranties? |
| | A) | The buyer's household members and guests |
| | B) | Any reasonable and foreseeable users of goods that are sold by the seller |
| | C) | Anyone injured by the goods sold by the seller |
| | D) | All of the above |
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| 6 | |
A buyer may waive legal protections from express and implied warranties by: |
| | A) | Failing to examine goods for which an express warranty was created by a sample or model |
| | B) | Failing to comply with the seller's request to inspect the goods |
| | C) | Both A. and B. |
| | D) | Neither A. nor B.; the UCC does not recognize a buyer's waiver of legal protections from express and implied warranties |
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| 7 | |
The Uniform Commercial Code (UCC) assumes that the seller has good and valid title to the goods, and has the right to transfer title free and clear of any liens, judgments, or infringements of intellectual property rights of which the buyer does not have knowledge. The UCC specifically permits buyers to recover from sellers who have breached these warranties of __________. |
| | A) | Title |
| | B) | Merchantability |
| | C) | Encumbrance |
| | D) | Fitness |
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| 8 | |
If it is generally accepted in a trade that a certain product is always preassembled and shrink-wrapped, the failure of the seller to deliver the goods in that condition would be a breach of __________. |
| | A) | Express warranty |
| | B) | The implied warranty of merchantability |
| | C) | The implied warranty of trade usage |
| | D) | The implied warranty of fitness for a particular purpose |
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| 9 | |
Which of the following methods of waiving implied warranty liability is allowed by the UCC? |
| | A) | Seller disclaims in ambiguous, clear, conspicuous language |
| | B) | Seller disclaims in clear, unambiguous, conspicuous language |
| | C) | Seller disclaims in clear, unambiguous, non-conspicuous language |
| | D) | None of the above |
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| 10 | |
The __________ is a warranty that arises as a result of generally accepted trade practices. |
| | A) | Implied warranty of merchantability |
| | B) | Implied warranty of fitness for a particular purpose |
| | C) | Implied warranty of trade usage |
| | D) | All of the above |
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