Understanding Business and Personal Law
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Chapter 14: The Importance of Warranties
      
  1.Implied warranties can be excluded by the words  
  a.   "privity of contract not required."  
  b.   "the goods will be delivered free from any lien."  
  c.   "as is" and "with all faults."  
  d.   "consequential damages may occur."  
      
  2.To succeed in a claim for breach of warranty, the buyer must satisfy his or her privity of contract.  
  a.   TRUE  
  b.   FALSE  
      
  3.A full warranty promises to fix or replace a defective product at no charge to the consumer.  
  a.   TRUE  
  b.   FALSE  
      
  4.An express warranty can be made by  
  a.   the use of a sample or model.  
  b.   a description of the goods.  
  c.   a statement of fact or promise made by the seller.  
  d.   all of the above.  
      
  5.Some states protect their consumers by saying that implied warranties cannot be excluded when goods are sold.  
  a.   TRUE  
  b.   FALSE  
      
  6.A limited warranty promises to fix or replace a defective product at no charge to the consumer within 90 days of purchase.  
  a.   TRUE  
  b.   FALSE  
      
  7.The warranty of merchantability is beneficial because  
  a.   the merchant warrants that the goods being sold are merchantable.  
  b.   it supersedes any other warranty offered.  
  c.   it applies to every sale that occurs in the United States.  
  d.   a private party warrants that the goods being sold are merchantable.  
      
  8.The duty to notify requires that the  
  a.   seller notify the buyer within a reasonable time after the defect is discovered.  
  b.   buyer notify the seller within a reasonable time after the defect is discovered.  
  c.   buyer refuse to accept the goods.  
  d.   seller refund the buyer for the purchase price of the goods.  
      
  9.A warranty of fitness is created when the buyer relies on the seller's knowledge and advice when making the purchase.  
  a.   TRUE  
  b.   FALSE  
      
  10.The Magnuson-Moss Warranty Act  
  a.   was written to provide protection to consumers who purchase automobiles or motorcycles.  
  b.   does not provide for limited warranties.  
  c.   is a law that affects only the sale of goods sold within a particular state.  
  d.   gives added protection to consumers when written express warranties are made.  

 
 
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