Enrichment Activity
Answersȱwillȱvary.ȱ
ȱ
Lessonȱ14—2ȱ
Quiz
2.ȱJȱ
3.ȱGȱ
5.ȱHȱ
6.ȱFȱ
8.ȱBȱ
9.ȱEȱ
ȱ
ȱ
Practice Activity
1.ȱNo,ȱJasonȱwillȱnotȱwin.ȱUnderȱtheȱUCC,ȱwhenȱgoodsȱareȱtransferredȱwithoutȱbeȬ
ingȱmoved,ȱtheȱriskȱofȱlossȱtransfersȱtoȱtheȱbuyerȱonȱacknowledgmentȱbyȱtheȱ
Reteach
Enrichment Activity
Chapter 14 Ownership and Risk of Loss in Sales 3-29
ANSWERS TO TEST QUESTIONS
ȱȱSECTIONȱIȱ
ȱ
SECTIONȱIIȱ
ȱ
SECTIONȱIIIȱ
ȱ
3-30 Chapter 14 Ownership and Risk of Loss in Sales
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ15—1ȱQUIZȱ
LegalȱConceptsȱ
Directions:ȱInȱtheȱAnswersȱcolumn,ȱwriteȱtheȱletterȱfromȱColumnȱ1ȱthatȱrepresentsȱ
theȱwordȱorȱphraseȱthatȱmatchesȱtheȱstatementȱinȱColumnȱ2.ȱ
ȱColumnȱ1ȱȱColumnȱ2ȱAnswersȱ
ȱȱ 1.ȱAȱclassificationȱforȱproductsȱthatȱdoȱnotȱȱ ȱȱ1. ______ ȱ
meetȱtheȱFDA’sȱstandardsȱforȱpurityȱandȱȱ
qualityȱ
ȱȱ 2.ȱAnȱindividualȱwhoȱacquiresȱgoodsȱȱ ȱȱ2. ______ ȱ
primarilyȱforȱpersonalȱuseȱ
ȱȱ 3.ȱAnyȱmethodȱofȱbusinessȱcharacterizedȱbyȱȱ ȱȱ3. ______ ȱ
ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱbadȱfaith,ȱdeception,ȱfraud,ȱorȱaȱtendencyȱȱ
ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱtoȱinhibitȱcompetitionȱorȱmonopolizeȱ
ȱȱ 4.ȱAȱvoluntary,ȱcourtȬenforceableȱagreementȱȱ ȱȱ4. ______ ȱ
toȱstopȱanȱillegalȱorȱquestionableȱpracticeȱ
ȱȱ 5.ȱAȱphraseȱthatȱmeansȱ“letȱtheȱbuyerȱbeware”ȱȱȱ5. ______ ȱ
ȱȱ 6.ȱTheȱreturnȱofȱwrongfullyȱobtainedȱmoneyȱȱ ȱȱ6. ______ ȱ
toȱaȱcustomerȱ
ȱȱ 7.ȱTheȱpracticeȱofȱluringȱcustomersȱtoȱaȱstoreȱȱ ȱȱ7. ______ ȱ
byȱadvertisingȱlowȬpricedȱitemsȱthatȱȱ
areȱunderstockedȱ
ȱȱ 8.ȱAȱcourtȱactionȱthatȱallowsȱoneȱorȱseveralȱȱ ȱȱ8. ______ ȱ
personsȱtoȱsueȱonȱtheȱbehalfȱofȱothersȱ
A.ȱceaseȬandȬdesistȱȱ
ȱorderȱ
B.ȱcaveatȱemptorȱ
C.ȱrestitutionȱ
D.ȱbaitȱandȱswitchȱ
E.ȱfalseȱandȱȱ
ȱmisleadingȱȱ
ȱadvertisingȱ
F.ȱconsentȱorderȱ
G.ȱclassȱactionȱ
H.ȱunfairȱmethodsȱ
ȱofȱcompetitionȱ
I.ȱconsumerȱ
J
.ȱadulteratedȱ
ȱȱ 9.ȱAnȱuntrueȱclaimȱofȱqualityȱorȱeffectivenessȱȱȱ9. ______ ȱ
ȱȱ 10.ȱAnȱorderȱthatȱrequiresȱaȱcompanyȱtoȱstopȱȱȱȱȱȱ10. ______ ȱ
aȱcertainȱconductȱ
LegalȱApplicationȱ
11.ȱSheilaȱLemleyȱordersȱsixȱcinnamonȬscentedȱvotiveȱcandlesȱandȱaȱbrassȱcandelaȬ
braȱfromȱaȱdoorȬtoȬdoorȱsalesperson.ȱSheilaȱwritesȱaȱcheckȱforȱ$75ȱforȱtheseȱ
items.ȱTwoȱdaysȱlater,ȱsheȱreceivesȱanȱidenticalȱcandelabraȱandȱsimilarȱcandlesȱ
asȱaȱbirthdayȱgiftȱfromȱherȱbestȱfriend.ȱSheȱdecidesȱtoȱcancelȱherȱorder,ȱbutȱtheȱ
salespersonȱrefusesȱtoȱrefundȱSheila’sȱmoney.ȱIsȱtheȱsalespersonȱviolatingȱFTCȱ
guidelines?ȱExplainȱyourȱanswer.ȱ
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ15—1ȱPRACTICEȱACTIVITYȱ
Readȱtheȱfollowingȱcasesȱandȱanswerȱtheȱquestionsȱaboutȱthem.ȱAttachȱaȱpageȱforȱanswers.ȱ
ȱ
1.ȱKraft,ȱInc.,ȱaȱfoodȱcompany,ȱranȱadvertisementsȱforȱKraftȱSinglesȱcheeseȱslicesȱ
claimingȱthatȱeachȱsliceȱcontainedȱasȱmuchȱcalciumȱasȱfiveȱouncesȱofȱmilk.ȱTheȱ
FederalȱTradeȱCommissionȱfoundȱthisȱclaimȱtoȱbeȱdeceptiveȱandȱorderedȱKraftȱ
toȱstopȱrunningȱtheȱads.ȱTheȱFTCȱconsideredȱtheȱadsȱtoȱbeȱdeceptiveȱbecauseȱ
whileȱKraftȱdoesȱuseȱfiveȱouncesȱofȱmilkȱinȱmakingȱeachȱslice,ȱapproximatelyȱ
theseȱwarnings,ȱanȱexecutiveȱatȱKraftȱorderedȱaȱcontinuationȱofȱtheȱads,ȱcitingȱ
theȱgrowthȱofȱKraftȱSinglesȱforȱtheȱfirstȱtimeȱinȱfourȱyears.ȱFinally,ȱtheȱFTCȱandȱ
theȱCaliforniaȱAttorneyȱGeneral’sȱOfficeȱindependentlyȱnotifiedȱtheȱcompanyȱ
thatȱinvestigationsȱhadȱbeenȱinitiatedȱtoȱconfirmȱtheȱclaims.ȱDespiteȱthis,ȱKraftȱ
continuedȱtoȱrunȱtheȱads.ȱShouldȱtheȱFTC’sȱorderȱtoȱKraftȱforȱitȱtoȱceaseȱandȱdeȬ
sistȱfromȱmakingȱtheseȱmisrepresentationsȱbeȱupheldȱbyȱtheȱcourt?ȱWhatȱwouldȱ
happenȱifȱthereȱwereȱnoȱcheckȱonȱadvertising?ȱWhoȱwouldȱbeȱharmed?ȱExplain.ȱ
[Kraft,ȱInc.ȱv.ȱFederalȱTradeȱCommission,ȱ970ȱF.ȱ2dȱ311ȱ(7thȱCir.ȱ1992)]ȱ
Chapter 15 Consumer Protection 3-33
2.ȱInȱ1974,ȱtheȱFTCȱissuedȱaȱceaseȬandȬdesistȱorderȱagainstȱACBȱSalesȱandȱServices,ȱ
aȱcollectionȱagency,ȱorderingȱACBȱtoȱstopȱcertainȱdeceptiveȱpracticesȱinȱitsȱcolȬ
lectionȱefforts.ȱACBȱwasȱorderedȱtoȱcommunicateȱtheȱorderȱtoȱallȱpresentȱandȱfuȬ
emergencyȱexistedȱthatȱrequiredȱtheȱcollectorȱtoȱspeakȱwithȱtheȱdebtorȱimmediȬ
ately.ȱViolationsȱsuchȱasȱtheseȱwereȱreportedȱtoȱtheȱFTCȱoverȱ1,000ȱtimes.ȱInȱthisȱ
case,ȱtheȱcourtȱorderedȱthatȱACBȱpayȱinȱexcessȱofȱ$300,000ȱforȱcontinuedȱviolaȬ
tions.ȱHowȱcanȱtheȱFTCȱmonitorȱviolationsȱofȱtheȱlawȱwhenȱthereȱareȱcontinuousȱ
violationsȱsuchȱasȱthis?ȱExplain.ȱ[UnitedȱStatesȱv.ȱACBȱSalesȱandȱServices,ȱInc.,ȱ683ȱ
F.ȱSupp.ȱ734ȱ(D.C.ȱAriz.ȱ1987)]ȱ
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ15—1ȱRETEACHȱ
Directions:ȱThisȱgameȱisȱcalledȱIȱHave—WhoȱHas.ȱMakeȱtwoȱcopiesȱofȱtheȱtableȱbeȬ
low.ȱKeepȱoneȱcopyȱandȱcutȱtheȱotherȱoneȱintoȱseparateȱpieces.ȱShuffleȱtheȱcardsȱandȱ
giveȱoneȱtoȱeachȱplayer.ȱReadȱtheȱfirstȱdefinitionȱtoȱtheȱplayers.ȱTheȱstudentȱwhoȱhasȱ
thatȱtermȱwillȱthenȱorallyȱreadȱhisȱorȱherȱcard.ȱTheȱgameȱcontinuesȱuntilȱtheȱstudentȱ
whoȱhasȱaȱtermȱbutȱnoȱdefinitionȱreadsȱhisȱorȱherȱcard.ȱTheȱcardsȱcouldȱbeȱreshufȬ
fledȱforȱanotherȱroundȱofȱplay.ȱ
ȱ
Firstȱdefinitionȱtoȱbeȱreadȱtoȱplayers:ȱWhoȱhasȱaȱclassificationȱforȱproductsȱthatȱdoȱ
notȱmeetȱtheȱFDA’sȱstandardȱforȱpurityȱandȱquality?ȱ
ȱ
Iȱhaveȱadulterated.ȱ
ȱ
Whoȱhasȱanȱȱ
individualȱwhoȱ
acquiresȱgoodsȱ
primarilyȱforȱȱ
personalȱuse?ȱ
Iȱhaveȱconsumer.ȱ
Whoȱhasȱbusinessȱ
methodȱcharacterȬ
izedȱbyȱbadȱfaith,ȱ
deception,ȱfraudȱorȱaȱ
tendencyȱtoȱinhibitȱ
competitionȱorȱ
monopolize?ȱ
Iȱhaveȱunfairȱ
methodsȱofȱ
competitionȱ
Whoȱhasȱaȱȱ
voluntary,ȱcourtȬ
enforceableȱ
agreementȱtoȱstopȱanȱ
illegalȱpractice?ȱ
Iȱhaveȱconsentȱorder.ȱ
ȱ
Whoȱhasȱaȱphraseȱ
thatȱmeansȱ“letȱtheȱ
buyerȱbeware”?ȱ
Iȱhaveȱcaveatȱȱ
emptor.ȱ
Whoȱhasȱtheȱreturnȱ
ofȱwrongfullyȱ
obtainedȱmoneyȱtoȱaȱ
customer?ȱ
Iȱhaveȱrestitution.ȱ
ȱ
Whoȱhasȱtheȱpracticeȱ
ofȱluringȱcustomersȱ
toȱaȱstoreȱbyȱ
advertisingȱaȱfew,ȱ
Iȱhaveȱbaitȱandȱ
switch.ȱ
Whoȱhasȱaȱcourtȱ
actionȱthatȱallowsȱ
oneȱorȱseveralȱ
personsȱtoȱsueȱonȱtheȱ
Iȱhaveȱclassȱaction.ȱ
ȱ
Whoȱhasȱanȱuntrueȱ
claimȱofȱqualityȱorȱ
effectiveness?ȱ
TradeȱCommissionȱ
(FTC).ȱ
Whoȱhasȱaȱformȱofȱ
gamblingȱwhereȱnoȱ
skillȱisȱrequiredȱtoȱ
win?ȱ
ȱ
Whoȱhasȱtheȱphraseȱ
thatȱmeansȱletȱtheȱ
sellerȱbeware?ȱ
Whoȱhasȱtheȱforceȱ
thatȱdrivesȱefficientȱ
businessesȱtoȱȱ
createȱnewȱandȱ
betterȱproductsȱandȱ
services?ȱ
3-34 Chapter 14 Ownership and Risk of Loss in Sales
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ15—1ȱENRICHMENTȱ
Thisȱlessonȱexplainedȱhowȱandȱwhyȱtheȱlawȱfocusesȱonȱtheȱprotectionȱofȱconsumers.ȱ
OneȱwayȱtheȱfederalȱgovernmentȱhelpsȱtoȱprotectȱconsumersȱisȱthroughȱtheȱConȬ
sumerȱProductȱSafetyȱAct.ȱTheȱConsumerȱProductȱSafetyȱCommissionȱ(CPSC)ȱhasȱ
theȱauthorityȱtoȱissueȱandȱenforceȱsafetyȱstandardsȱforȱmostȱconsumerȱproducts.ȱTheȱ
mereȱthreatȱofȱCPSCȱactionȱoftenȱleadsȱmanufacturersȱtoȱrecallȱtheirȱproductsȱ“volȬ
untarily”ȱinȱorderȱtoȱprotectȱconsumersȱfromȱharm.ȱFindȱoutȱaboutȱaȱproductȱthatȱ
hasȱrecentlyȱbeenȱrecalled.ȱRecallȱnoticesȱareȱoftenȱprintedȱinȱtheȱnewspaper,ȱreadȱ
overȱtheȱradio,ȱandȱpostedȱinȱretailȱstoresȱnearȱtheȱreturnsȱdepartmentȱorȱinȱtheȱareaȱ
ofȱtheȱstoreȱwhereȱtheȱitemȱwouldȱbeȱsold.ȱRecallsȱforȱinfants’ȱandȱchildren’sȱprodȬ
uctsȱoftenȱareȱpublishedȱinȱparentingȱmagazines.ȱAnswerȱtheȱfollowingȱquestions.ȱ
ȱ
1.ȱWhyȱwasȱtheȱproductȱrecalled?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
2.ȱIfȱyouȱownedȱtheȱrecalledȱproduct,ȱwhatȱshouldȱyouȱdoȱwithȱit?ȱReturnȱitȱtoȱtheȱ
storeȱwhereȱitȱwasȱpurchasedȱforȱaȱreplacementȱorȱaȱrefund?ȱCallȱtheȱmanufacȬ
turerȱforȱaȱreplacementȱpart?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
3.ȱHowȱhaveȱtheȱmanufacturer/distributors/retailersȱattemptedȱtoȱalertȱconsumersȱ
toȱtheȱrecall?ȱ
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ15—2ȱQUIZȱ
LegalȱConceptsȱ
Directions:ȱInȱtheȱAnswersȱcolumnȱatȱtheȱrightȱofȱeachȱstatement,ȱwriteȱtheȱletterȱthatȱ
representsȱtheȱword,ȱorȱgroupȱofȱwords,ȱthatȱcorrectlyȱcompletesȱtheȱstatement.ȱ
ȱAnswersȱ
ȱȱ1.ȱAnȱassuranceȱofȱqualityȱorȱpromiseȱofȱperformanceȱclearlyȱ
madeȱbyȱtheȱsellerȱisȱa(n)ȱ(a)ȱfullȱwarranty,ȱ(b)ȱlimitedȱwarȬ
ranty,ȱ(c)ȱexpressȱwarrantyȱ
ȱȱȱ1.ȱ_____ȱ
ȱȱ2.ȱAȱwarrantyȱthatȱobligatesȱtheȱsellerȱtoȱrepairȱorȱreplaceȱaȱdefecȬ
tiveȱproductȱwithoutȱcostȱtoȱtheȱbuyerȱandȱwithinȱaȱreasonableȱ
timeȱisȱa(n)ȱ(a)ȱfullȱwarranty,ȱ(b)ȱlimitedȱwarranty,ȱ(c)ȱimpliedȱ
warrantyȱ
ȱȱȱ2.ȱ_____ȱ
ȱȱ3.ȱAnȱunstatedȱwarrantyȱobligationȱimposedȱonȱallȱsellersȱisȱ
calledȱa(n)ȱ(a)ȱfullȱwarranty,ȱ(b)ȱlimitedȱwarranty,ȱ(c)ȱimpliedȱ
warrantyȱ
ȱȱȱ3.ȱ_____ȱ
ȱȱ4.ȱAȱwarrantyȱthatȱprovidesȱlessȱprotectionȱthanȱaȱfullȱwarrantyȱ
isȱa(n)ȱ(a)ȱexpressȱwarranty,ȱ(b)ȱlimitedȱwarranty,ȱ(c)ȱimpliedȱ
warrantyȱ
ȱȱȱ4.ȱ_____ȱ
ȱȱ5.ȱAȱwarrantyȱwhereȱgoodsȱareȱtoȱbeȱdeliveredȱfreeȱofȱallȱclaimsȱ
ofȱthirdȱpartiesȱisȱa(n)ȱ(a)ȱexpressȱwarranty,ȱ(b)ȱwarrantyȱofȱ
title,ȱ(c)ȱwarrantyȱagainstȱencumbrancesȱ
ȱȱȱ5.ȱ_____ȱ
ȱȱ6.ȱAȱȱrepudiationȱorȱrenunciationȱofȱaȱrightȱorȱpowerȱtypicallyȱorȱ
legallyȱvestedȱinȱaȱpersonȱisȱa(n)ȱ(a)ȱwarranty,ȱ(b)ȱdisclaimer,ȱ
(c)ȱinfringementȱ
ȱȱȱ6.ȱ_____ȱ
ȱȱ7.ȱAȱwarrantyȱwhereȱtheȱsellerȱwarrantsȱthatȱheȱorȱsheȱhasȱtitleȱtoȱ
theȱgoodsȱandȱtheȱrightȱtoȱtransferȱthemȱisȱa(n)ȱ(a)ȱimpliedȱ
warranty,ȱ(b)ȱexplicitȱwarranty,ȱ(c)ȱwarrantyȱofȱtitleȱ
ȱȱȱ7.ȱ_____ȱ
ȱȱ8.ȱAȱwarrantyȱwhereȱtheȱsellerȱrecommendsȱaȱproductȱforȱaȱspeȬ
cificȱpurposeȱtoȱaȱbuyerȱisȱaȱ(a)ȱwarrantyȱagainstȱencumȬ
brances,ȱ(b)ȱwarrantyȱofȱtitle,ȱ(c)ȱwarrantyȱofȱfitnessȱ
ȱȱȱ8.ȱ_____ȱ
ȱȱ9.ȱAȱwarrantyȱwhereȱaȱmerchantȱpromisesȱthatȱgoodsȱwillȱbeȱdeȬ
liveredȱfreeȱofȱanyȱthirdȱparty’sȱclaimsȱforȱunauthorizedȱuseȱisȱ
aȱ(a)ȱwarrantyȱofȱfitness,ȱ(b)ȱwarrantyȱofȱmerchantability,ȱ(c)ȱ
warrantyȱagainstȱinfringementȱ
ȱȱȱ9.ȱ_____ȱ
10.ȱAȱwarrantyȱthatȱrequiresȱgoodsȱtoȱbeȱfitȱforȱordinaryȱpurposesȱ
forȱwhichȱsuchȱgoodsȱareȱusedȱisȱaȱ(a)ȱwarrantyȱagainstȱinȬ
fringement,ȱ(b)ȱwarrantyȱofȱmerchantability,ȱ(c)ȱwarrantyȱofȱ
titleȱ
ȱ10.ȱ_____ȱ
3-36 Chapter 14 Ownership and Risk of Loss in Sales
LegalȱApplicationȱ
11. MarkȱRedkaȱdirectsȱaȱsummerȱcampȱforȱoneȱweekȱeachȱsummer.ȱHeȱattemptsȱtoȱ
keepȱtheȱcampȱregistrationȱfeeȱlowȱbyȱpurchasingȱfoodȱfromȱdiscountȱstores.ȱ
Markȱboughtȱfiftyȱloavesȱofȱbreadȱthatȱwereȱsoldȱatȱaȱbargainȱpriceȱ“withȱallȱ
faults.”ȱTheȱcampersȱrefusedȱtoȱeatȱtheȱbreadȱbecauseȱitȱwasȱstale.ȱCanȱMarkȱ
claimȱaȱbreachȱofȱwarrantyȱofȱmerchantabilityȱandȱrequestȱaȱrefund?ȱExplainȱ
yourȱanswer.ȱ
ȱȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
12.ȱSilviaȱwasȱusingȱanȱaluminumȱstepladderȱtoȱchangeȱaȱlightȱbulbȱinȱherȱgarage.ȱ
Sheȱhadȱtoȱstandȱonȱtheȱtopȱstepȱtoȱreachȱtheȱlight.ȱSheȱlostȱherȱbalance,ȱfellȱontoȱ
theȱconcreteȱfloor,ȱandȱbrokeȱherȱleg.ȱTheȱladderȱdoesȱcontainȱaȱwarningȱaboutȱ
standingȱonȱtheȱtopȱstep.ȱCanȱSilviaȱsueȱtheȱladder’sȱmanufacturerȱforȱstrictȱliȬ
ability?ȱExplainȱyourȱanswer.ȱ
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ15—2ȱPRACTICEȱACTIVITYȱ
Readȱtheȱfollowingȱcasesȱandȱanswerȱtheȱquestionsȱaboutȱthem.ȱAttachȱaȱpageȱifȱadditionalȱ
spaceȱisȱneededȱforȱanswers.ȱ
ȱ
1.ȱTheȱSchneblesȱpurchasedȱaȱDobermanȱpinscherȱfromȱtheȱHouseȱofȱHoyt.ȱTheyȱ
wantedȱaȱdocileȱdog;ȱoneȱthatȱwasȱnotȱaggressiveȱandȱwasȱappropriateȱforȱcomȬ
panionship.ȱTheȱHouseȱofȱHoytȱrepresentedȱthisȱDobermanȱasȱjustȱsuchȱaȱdog.ȱ
ofȱHoytȱclaimingȱbreachȱofȱexpressȱwarrantyȱmadeȱatȱtheȱtimeȱtheȱSchneblesȱ
purchasedȱtheȱdogȱthatȱtheȱdogȱwasȱdocile.ȱShouldȱtheȱSchneblesȱbeȱableȱtoȱreȬ
coverȱforȱtheȱinjuryȱcausedȱbyȱtheȱDoberman?ȱExplain.ȱ[Schnebleȱv.ȱHouseȱofȱHoyt,ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
2.ȱWebsterȱwentȱtoȱtheȱBlueȱShipȱTeaȱRoom,ȱdescribedȱasȱaȱquaintȱrestaurantȱloȬ
catedȱinȱBostonȱandȱorderedȱaȱbowlȱofȱfishȱchowder.ȱTheȱchowderȱconsistedȱofȱ
breachȱofȱwarrantyȱofȱfitnessȱorȱmerchantability.ȱShouldȱtheȱBlueȱShipȱTeaȱRoomȱ
beȱheldȱtoȱhaveȱbreachedȱsuchȱaȱwarranty?ȱExplain.ȱ[Websterȱv.ȱBlueȱShipȱTeaȱ
3-38 Chapter 14 Ownership and Risk of Loss in Sales
Chapter 15 Consumer Protection 3-39
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ15—2ȱRETEACHȱ
Directions:ȱUnscrambleȱtheȱlettersȱfollowingȱeachȱquestionȱandȱwriteȱtheȱanswerȱinȱ
theȱblankȱprovided.ȱȱȱȱȱȱȱȱAnswersȱ
sellers?ȱidplmieȱ
ȱȱ3.ȱWhatȱkindȱofȱwarrantyȱprovidesȱlessȱcoverageȱthanȱaȱ
3.ȱ_________________ȱ
ȱȱ4.ȱȱ Whatȱisȱaȱseller’sȱstatementȱaboutȱaȱproduct’sȱqualityȱ
4.ȱ_________________ȱ
ȱȱ5.ȱWhatȱisȱaȱrepudiationȱorȱrenunciationȱofȱaȱrightȱorȱ
powerȱtypicallyȱorȱlegallyȱvestedȱinȱaȱperson? ȱȱ
5.ȱ_________________ȱ
ȱȱ6.ȱWhatȱisȱtheȱunauthorizedȱuseȱofȱaȱproduct?ȱȱ
6.ȱ_________________ȱ
ȱȱ7.ȱWhatȱareȱclaimsȱbyȱthirdȱpartiesȱenforceableȱagainstȱ
7.ȱ_________________ȱ
ȱȱ8.ȱWhatȱkindȱofȱwarrantyȱincludesȱanȱexplicitȱassuranceȱ
ofȱqualityȱorȱpromiseȱofȱperformanceȱbyȱtheȱseller?ȱ
8.ȱ_________________ȱ
ȱȱ9.ȱInȱwhatȱkindȱofȱwarrantyȱdoesȱtheȱsellerȱrecommendȱ
aȱproductȱtoȱtheȱbuyerȱforȱaȱspecificȱpurpose?ȱsentisfȱ
9.ȱ_________________ȱ
10.ȱWhatȱkindȱofȱwarrantyȱrequiresȱthatȱgoodsȱbeȱfitȱforȱ
ordinaryȱpurposesȱforȱwhichȱsuchȱgoodsȱareȱused?ȱ
10.ȱ_________________ȱ
11.ȱWhatȱisȱtheȱtortȱthatȱcouldȱbeȱtheȱbasisȱforȱaȱproductȱ
11.ȱ_________________ȱ
12.ȱThisȱtypeȱofȱliabilityȱholdsȱaȱdefendantȱliableȱwithoutȱȱȱ
12.ȱ_________________ȱ
13.ȱWhatȱisȱtheȱrelationshipȱbetweenȱcontractingȱpartiesȱ
13.ȱ_________________ȱ
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ15—2ȱENRICHMENTȱ
Aȱwarranty,ȱasȱdiscussedȱinȱthisȱlesson,ȱisȱaȱstatementȱaboutȱtheȱproduct’sȱqualitiesȱ
orȱperformanceȱthatȱtheȱsellerȱassuresȱtheȱbuyerȱisȱtrue.ȱTheȱFederalȱTradeȱCommisȬ
sionȱhasȱestablishedȱcertainȱminimumȱstandardsȱthatȱmustȱbeȱmetȱbyȱsellersȱwhoȱ
giveȱwrittenȱwarrantiesȱonȱconsumerȱproductsȱcostingȱmoreȱthanȱ$15ȱandȱthatȱnorȬ
mallyȱareȱusedȱforȱpersonal,ȱfamily,ȱorȱhouseholdȱpurposes.ȱManyȱproductsȱyouȱ
andȱyourȱfamilyȱmayȱhaveȱpurchasedȱwillȱcomeȱwithȱwrittenȱwarranties—cameras,ȱ
stereoȱequipment,ȱappliances,ȱetc.ȱSelectȱoneȱofȱtheseȱwarrantiesȱtoȱuseȱasȱanȱexamȬ
ple.ȱReviewȱtheȱwarrantyȱrequirementsȱbelowȱandȱdetermineȱifȱallȱofȱtheȱrequiredȱ
informationȱisȱincluded.ȱInȱtheȱspacesȱprovided,ȱjotȱdownȱtheȱpertinentȱinformationȱ
forȱeachȱrequirement.ȱ
ȱ
1.ȱTheȱbrandȱname,ȱmodelȱnumber,ȱandȱaȱdescriptionȱofȱtheȱproductȱȱ
ȱ
ȱ
2.ȱToȱwhomȱtheȱwarrantyȱisȱextendedȱ(forȱexample,ȱifȱitȱisȱlimitedȱtoȱtheȱoriginalȱ
buyer)ȱandȱanyȱexcludedȱpartsȱofȱtheȱproductȱ
ȱ
ȱ
3.ȱWhatȱtheȱwarrantorȱ(oneȱwhoȱmakesȱaȱwarranty)ȱwillȱandȱwillȱnotȱdoȱinȱtheȱ
eventȱofȱaȱbreachȱofȱwarrantyȱ
ȱ
ȱ
4.ȱWhenȱtheȱwarrantyȱbeginsȱ(ifȱdifferentȱfromȱpurchaseȱdate)ȱandȱwhenȱitȱendsȱ
ȱ
ȱ
5.ȱTheȱstepȬbyȬstepȱprocedureȱtoȱobtainȱperformanceȱofȱwarrantyȱobligationsȱ
ȱ
ȱ
6.ȱTheȱavailabilityȱofȱanyȱinformalȱmethodsȱofȱsettlingȱdisputesȱ
ȱ
ȱ
7.ȱAnyȱlimitationȱonȱhowȱlongȱimpliedȱwarrantiesȱlastȱ
ȱ
ȱ
8.ȱAnyȱexclusionȱorȱlimitationȱonȱincidentalȱorȱconsequentialȱdamagesȱ
ȱ
ȱ
9.ȱTheȱwordsȱ“Thisȱwarrantyȱgivesȱyouȱspecificȱlegalȱrights,ȱandȱyouȱmayȱalsoȱ
haveȱotherȱrightsȱwhichȱvaryȱfromȱstateȱtoȱstate.”ȱ