FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 21: Warranties and Consumer Protection Law

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

Sadie is shopping for a new pair of running shoes.She tells the salesperson that she is a marathoner and needs shoes for distance.The salesperson suggests that Sadie buy a pair of Mercury running shoes.Mercury shoes are actually designed for walking rather than running.On mile 21 of her first training run,the shoes start to wear through in the heel.What type of warranty has been breached?

A) Express warranty.
B) Implied warranty of merchantability.
C) Implied warranty of fitness for a particular purpose.
D) None (No warranty was made in this situation) .

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

The UCC permits disclaimers of warranties

A) under no circumstances.
B) when the seller disclaims properly.
C) if the buyer was unaware of the warranties.
D) when allowed by common law.

E) B) and C)
F) A) and D)

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

The Truth in Lending Act applies to credit extensions made to

The Truth in Lending Act covers creditors that

Credit card companies must now give a 45-day notice of any rate hike.

Which of the following must be approved by the FDA before it can be sold to the general public?

In the local paper,a car dealership advertises a small used car for a great price and a low interest rate loan.When Patrice comes in to look at that car,the salesman steers her away from the advertised car.Instead,the salesman tries to convince her to buy a different used car with a much higher interest rate loan.What unfair sales practice might this be an example of?

In Birdsong v.Apple,Inc.,Birdsong brought a class action suit against Apple,alleging that iPod owners had suffered hearing loss using the iPod earbuds set at the highest decibel level.Birdsong claimed Apple breached an implied warranty of merchantability.The court held

Describe how the federal government is protecting consumers online regarding spam.

Expressly false statements can result in breach-of-warranty lawsuits.

Giorgio runs a baseball equipment supply store.He specializes in supplying batting cages with new and used pitching machines.Giorgio sold Juanita a used pitching machine for her softball team.Juanita signs a lengthy contract in which Giorgio disclaims all liability and sells the machine to her "as is." These terms are in the same font as the rest of the text and not bolded,underlined,or otherwise highlighted.When Juanita gets the machine to her house,it catches fire and burns down her garage.Is Giorgio potentially liable for the damage?

A car manufacturer advertises that the windshield in its cars is shatterproof and will not break even when hit with a strong impact.While an owner of one of the cars was driving home one day,a small rock hit the windshield and the windshield broke,cutting the driver.What type of warranty was breached?

Which of the following is not one of the FDA's powers?

Which agency had its oversight power over credit card issuers increased by the Credit Card Accountability Responsibility and Disclosure Act of 2009?

Seller lists his car on Craigslist and includes the phrases "as is" and "with all faults" in bold,conspicuous letters in the advertisement.Seller knows that the brakes are faulty.Buyer purchases the car and is later injured when the brakes fail and the car is wrecked.Did Seller limit his liability against Buyer in a lawsuit by using the term "as is"?

The FDA has authority to bring criminal prosecutions.

The Equal Credit Opportunity Act is limited to regulating applications for credit and does not apply to the charging of higher interest rates based on the race of the consumer.

Which of the following is not a requirement for disclaiming a warranty?

Collection agencies may threaten to put the debtor in jail in an effort to recover the money that is owed to the creditor as long as the debt is legitimate and overdue.

Credit card companies may give out free umbrellas on campus when a student completes an application for a card.