CHAPTER 19—WARRANTIES, PRODUCT LIABILITY, AND
CONSUMER PROTECTION Key
1. The statement of the seller in which the article sold is warranted or guaranteed is known as an _____.
2. A(n) _____ is one that the seller did not make but that is imposed by the law.
3. Which of the following is true of full warranties?
4. ______ is information that the law presumes everyone knows by virtue of the fact that it is filed or recorded
on the public record.
5. A _____ is a portion of a whole mass that is the subject of the transaction.
6. Which of the following is true of warranty of merchantability?
7. Which of the following is true of sale of food or drink?
8. Jack, a second-hand dealer of cars, provides his clients with the opportunity to examine them. Jenny test-
drove a car and got it checked by her mechanic as well. However, the mechanic missed a broken valve and the
car broke down after the purchase. Which of the following is likely to happen in this scenario?
9. The _____ is the total dollar amount the borrower will pay for the loan.
10. A warranty is an assurance that the article sold will conform to a certain standard or will operate in a certain
manner.
11. The statement of the seller in which the article sold is warranted or guaranteed is known as an implied
warranty.
12. An express warranty applies even if defects are actually known to the buyer, or defects are so apparent that
no special skill or ability is required to detect them.
13. All sellers, by the mere act of selling, make a warranty that they have good title and make rightful transfers.
14. A small piece of molded plastic shown to a car buyer to illustrate the materials and methods used in the
construction of cars creates a sale by sample.
15. Unless otherwise agreed, a merchant warrants that goods shall be delivered free of the rightful claim of any
third person by way of patent or trademark infringement.
16. The sale of food or drink, to be consumed off the seller’s premises, is not a sale.
17. Implied warranty arises as to fitness of used property for ordinary use from a sale made by a casual seller.
18. According to the Magnuson–Moss Warranty and Federal Trade Commission Improvement Act, the
consumer need not be informed of the warranty prior to the sale.
19. The Federal Trade Commission demands that advertisements be limited to statements about products that
can be substantiated.
20. Explain product uniformity.