Chapter Review
Chapter 24:
Warranties
Practice Test
1.
A warranty is a promise made by a __________.
a.
seller about the quality or performance of goods for sale
b.
buyer to make payments on time
c.
seller that the price of goods is within fair market value range
d.
buyer to use the product as designed
2.
Express warranties are created by all of the following EXCEPT __________.
a.
demonstration
b.
writing
c.
being implied by law
d.
oral statements
3.
Puffing __________.
a.
creates an express warranty
b.
is making statements of fact about a product
c.
is illegal under federal law
d.
is making obvious and lawful exaggerations about a product
4.
It is NOT true that written warranties __________.
a.
are required by law
b.
must declare all essential terms and conditions in a single document
c.
must be stated in simple language
d.
must be made available to the consumer before a sale
5.
A written warranty that covers some defects but not others is __________.
a.
illegal
b.
limited
c.
implied
d.
full
6.
If a seller sells a new product without a written warranty, there is __________.
a.
no warranty
b.
a limited warranty
c.
a full warranty
d.
an implied warranty
7.
Bo unknowingly buys a stolen CD player from Skylar. The warranty that has been broken is __________.
a.
express warranty
b.
warranty of fitness for a particular purpose
c.
warranty of title
d.
warranty of merchantability
8.
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 __________.
a.
express warranty
b.
warranty of fitness for a particular purpose
c.
warranty of title
d.
warranty of merchantability
9.
Which of the following is NOT a valid disclaimer of the warranty of merchantability?
a.
"as is"
b.
"with all faults"
c.
"no warranty of merchantability"
d.
"no warranty"
10.
A written warranty disclaims the implied warranty of merchantability during the period of the express warranty. This disclaimer __________.
a.
eliminates the implied warranty of merchantability
b.
limits the scope of the implied warranty
c.
is illegal and void under federal law
d.
voids the express warranty
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