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Exam 23: Warranties

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Question 1

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Lake Craft Inc. sells boats to consumers. To avoid liability for oral express warranties, each sales agreement should note that a boat is sold

A) as is.
B) in perfect condition.
C) subject to warranties included in the written contract only.
D) with no known defects.

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Question 2

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Because the UCC sections dealing with warranty disclaimers do not refer to unconscionability, the UCC's unconscionability standards do not apply to warranty disclaimers.

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Question 3

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Jem, a salesperson for Kitchens Inc., shows Lana, a buyer for Metro Diner, display items in Kitchens' showroom, stating that any purchased equipment will match the display. This is

To give rise to an implied warranty of fitness for a particular purpose, a seller must have actual knowledge of a buyer's particular purpose.

A merchant seller's unsuccessful attempt to repair or replace defective parts is not a breach of warranty if the attempt was undertaken in good faith and with the skill of similarly situated merchant sellers.

Pipe Company includes in its contracts a provision that reads, in large red letters, "There are no warranties that extend beyond the description on the face hereof." This disclaimer negates

Merchantable food is food that is fit to eat based on consumers' reasonable expectations.

Clark purchases a new car from Dicey's Deals. The retail installment contract states immediately above the buyer's signature in large, bold type: "There are no warranties that extend beyond the description on the face hereof" and "There are no express warranties that accompany this sale unless expressly written in this contract." Before purchasing the car, Clark specifically informed Dicey's salesperson that he wanted a car that could be driven in a dusty area without needing mechanical repairs. Dicey's salesperson said to Clark, "Nothing will go wrong with this car, but if it does, return it to us, and we will repair it without cost to you." Neither this statement nor any similar statement appears in the retail sales contract. Clark drives the car into a dust storm. The air filter gets plugged up, and the car engine overheats, causing motor damage. Dicey's refuses to repair the engine under any warranty. Clark claims that Dicey's is liable for breach of the implied warranty of fitness for a particular purpose, that the Magnuson-Moss Warranty Act prohibits disclaiming this implied warranty, and that the salesperson's express warranty has also been breached. What are the problems with Clark's claims?

Under the UCC, when express and implied warranties are consistent

It is not possible for the implied warranty of merchantability to be breached if a merchant does not know or could not have discovered that its product was defective.

If it is unreasonable for two warranties to be considered consistent, the intention of the parties determines which is dominant.

A representation concerning the quality, condition, description, or performance potential of goods is

On a breach of warranty, unless the parties have agreed to modify the remedies available, a buyer or lessee cannot rescind the agreement.

Sellers can effectively disclaim or modify title warranties by asserting that they are transferring only such rights, title, and interest as they have in the goods.

A bar of soap is not merchantable if stepping on it would cause its user to slip and fall.

To protect a buyer from surprise, a warranty can be limited only by general, ambiguous language.

To create an express warranty, a seller or lessor

A description of goods, such as a product-identification label on the outside of a box that contains the product, is not an express warranty.

Rent-From-Us Inc. leases Speedy-brand moving vans. Under most circumstances, the lessor will be presumed to have warranted that its title to the goods is

Gabe, a salesperson for Headphones Inc., tells Ike, a potential customer, that Headphones' products "last a lifetime." This is