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| 1 | |
An express warranty may include _____. |
| | A) | statements made by trade associations to the media |
| | B) | models contained in museums |
| | C) | the reasonable expectations of consumers |
| | D) | statements found inside a package |
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| 2 | |
Meghan never uses the words "warranty" or "guarantee" when she sells her products _____. |
| | A) | but may still be creating warranties |
| | B) | so she is not creating any warranties |
| | C) | so she cannot be a merchant seller |
| | D) | but may be illegally selling products without Magnuson-Moss Act approval |
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| 3 | |
Fast Auto Parts advertises a "Money-Back Guarantee" for a car wax but states in the advertisement that the container that the wax is in must be returned unopened to receive a full refund of the purchase price. This advertisement _____. |
| | A) | is allowed by Federal Trade Commission rules |
| | B) | is allowed in states that by legislation have overridden Federal Trade Commission rules |
| | C) | is not allowed by Federal Trade Commission rules |
| | D) | is only subject to state, not federal, regulation |
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| 4 | |
Under the Magnuson-Moss Warranty Act, when a written warranty is given to a consumer on goods costing more than _____, the warranty must disclose whether it is full or limited. |
| | A) | $5 |
| | B) | $10 |
| | C) | $15 |
| | D) | $20 |
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| 5 | |
Veronica tells Antonio, a hardware store owner, that she needs "heavy duty rope" and Antonio recommends on inch nylon rope. Veronica attempts to pull a two ton truck out of the mud with the rope and the rope breaks causing serious damage to the truck. Antonio has _____. |
| | A) | breached the implied warranty of fitness for a particular purpose |
| | B) | breached the implied warranty of use |
| | C) | breached an express warranty created by his recommendation |
| | D) | breached no warranty |
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| 6 | |
Kaitlyn sells thoroughbred race horses. Documents of pedigree are customary. Kaitlyn contracts to sell a thoroughbred race horse but the contract says nothing concerning documents of pedigree. Are such documents included in the sale? |
| | A) | Yes, because of usage of trade. |
| | B) | No, since they are not mentioned in the contract. |
| | C) | Yes, since Kaitlyn is a merchant. |
| | D) | No, since the buyer must indicate that the purchase is conditioned upon receiving the documents of pedigree. |
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| 7 | |
Chloe wants to exclude the implied warranty of fitness for a particular purpose when she sells goods. Chloe must _____. |
| | A) | put the exclusion in writing |
| | B) | make the exclusion conspicuous |
| | C) | both put the exclusion in writing and make the exclusion conspicuous |
| | D) | use any reasonable method |
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| 8 | |
Ryan does not turn on the television that he purchases at a pawn show even thought the pawn shop owner asks him to. When Ryan turns the television set on at home, the picture constantly rolls. What implied warranty has the pawn shop breached? |
| | A) | merchantability |
| | B) | fitness for a particular |
| | C) | title |
| | D) | none |
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| 9 | |
Dylan purchases a ladder from Bigger Hardware Co. The ladder breaks while Dylan's wife is climbing on it. Dylan's wife _____. |
| | A) | lacks privity of contract with Bigger Hardware |
| | B) | may not sue Bigger Hardware for a breach of contract |
| | C) | is not a foreseeable user of the ladder |
| | D) | can sue Dylan for having a defective ladder |
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| 10 | |
In a strict liability case the plaintiff need not prove _____. |
| | A) | lack of reasonable care |
| | B) | that the seller was engaged in the business of selling the product |
| | C) | that the consumer sustained physical harm or property damage |
| | D) | that the product was unreasonably dangerous |
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