Contract Law And Warranties

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| By Alyson Greenfield
A
Alyson Greenfield
Community Contributor
Quizzes Created: 2 | Total Attempts: 952
Questions: 20 | Attempts: 718

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Contract Law And Warranties - Quiz

Questions and Answers
  • 1. 

    A contract must be in writing to be enforceable.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    A contract does not necessarily have to be in writing to be enforceable. In many cases, verbal agreements can also be legally binding. However, having a written contract can provide better evidence of the terms and conditions agreed upon by both parties, making it easier to enforce the contract if any disputes arise. Therefore, while a written contract is not always required, it is generally recommended to have one to ensure clarity and avoid potential misunderstandings.

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  • 2. 

    Implied warranties are created by...

    • A.

      Law

    • B.

      Oral statements

    • C.

      Writing

    • D.

      Your amazing Introduction to Law teacher

    Correct Answer
    A. Law
    Explanation
    Implied warranties are created by law. This means that they are automatically established and do not require any specific agreement or contract. Implied warranties are based on the legal principle that certain guarantees are inherent in any transaction or sale of goods, even if they are not explicitly stated. These warranties protect consumers by ensuring that the products they purchase are of a certain quality and fit for their intended purpose. Therefore, the correct answer is law.

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  • 3. 

    A written warranty that covers some defects but not others is...

    • A.

      Limited

    • B.

      Illegal

    • C.

      Implied

    • D.

      Not fair

    Correct Answer
    A. Limited
    Explanation
    A written warranty that covers some defects but not others is limited. This means that while the warranty provides coverage for certain defects, it does not extend to all possible defects. This limitation allows the company or manufacturer to specify the scope of their warranty and exclude certain types of defects from being covered.

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  • 4. 

    Nate unknowingly buys a stolen IPad Mini from Timmy.  The warranty that has been broken is the..

    • A.

      Warranty of title

    • B.

      Warranty of fitness for a particular purpose

    • C.

      Warranty of merchantability

    • D.

      No warranty and Nate is out of luck

    Correct Answer
    A. Warranty of title
    Explanation
    Nate unknowingly buys a stolen IPad Mini from Timmy. The warranty of title is the warranty that guarantees that the seller of the product has the legal right to sell it, and that the buyer will not face any legal claims or disputes regarding the ownership of the product. In this case, since the IPad Mini is stolen, the warranty of title is broken.

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  • 5. 

    Matthew buys a new set of headphones that comes with no written warranty.  When he tries them out at home, the sound is muffled.  The warranty that is broken is the...

    • A.

      Warranty of merchantability

    • B.

      Warranty of fitness for a particular purpose

    • C.

      Express warranty

    • D.

      Warranty of title

    Correct Answer
    A. Warranty of merchantability
    Explanation
    The warranty of merchantability is the warranty that is broken in this situation. This warranty implies that the product is fit for its intended purpose and is of a quality that a reasonable person would expect. Since the headphones have a muffled sound, they are not meeting the standard of merchantability.

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  • 6. 

    A _________________________________ is an attempt to limit the seller's responsibilities if something goes wrong with a product.

    Correct Answer
    disclaimer
    Explanation
    A disclaimer is a statement or notice that is used to limit or exclude the seller's liability or responsibilities in case there are any issues or problems with a product. It is a way for the seller to protect themselves from potential legal claims or demands from customers who may experience negative consequences or damages from using the product. By including a disclaimer, the seller is essentially stating that they are not responsible for any harm or damages that may occur and that the buyer assumes all risks associated with the product.

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  • 7. 

    A warranty is a promise made by a

    • A.

      Seller about the quality or performance of goods for sale

    • B.

      Buyer to make payments on time

    • C.

      Seller that the price of goods is within fair market value range

    • D.

      Buyer to use the product as designed

    Correct Answer
    A. Seller about the quality or performance of goods for sale
    Explanation
    A warranty is a promise made by the seller about the quality or performance of goods for sale. This means that the seller guarantees that the goods will meet certain standards and will perform as expected. The warranty provides assurance to the buyer that if there are any defects or issues with the goods, the seller will take responsibility and either repair or replace the product. It is a form of protection for the buyer, ensuring that they are getting a product that meets their expectations and is of satisfactory quality.

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  • 8. 

    Express written warranties may be full or limited

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Express written warranties can be either full or limited. A full warranty provides the consumer with the assurance that the product will be repaired or replaced free of charge if any defects or malfunctions occur within a specific period of time. On the other hand, a limited warranty may have certain conditions or restrictions, such as only covering specific parts or requiring the consumer to pay for certain repairs. Therefore, it is true that express written warranties can be either full or limited.

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  • 9. 

    If a seller sells a new product without a written warranty, there are...

    • A.

      Implied warranties

    • B.

      Full warranties

    • C.

      No warranties

    • D.

      Limited warranties

    Correct Answer
    A. Implied warranties
    Explanation
    When a seller sells a new product without a written warranty, there are implied warranties. Implied warranties are unwritten guarantees that the product will be fit for its intended purpose and will be of reasonable quality. These warranties are automatically applied by law and cannot be disclaimed or excluded by the seller. Therefore, even without a written warranty, the seller is still responsible for ensuring that the product meets these implied warranties.

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  • 10. 

    ________________________ is making obvious and lawful exaggerations about a product.

    Correct Answer
    Puffing
    Explanation
    Puffing refers to the practice of making exaggerated claims about a product that are not meant to be taken literally. It is a common marketing technique used to entice potential buyers and create a positive image for the product. By using puffery, companies can promote their product in a way that may seem impressive but is not legally binding. Puffing allows advertisers to highlight the best qualities of their product without being held accountable for any factual inaccuracies.

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  • 11. 

    Which of the following is an example of consideration?

    • A.

      Money

    • B.

      The agreement to have another birthday

    • C.

      A worthless piece of trash

    • D.

      For a lifeguard to promise a swimmer to rescue him if he gets in trouble

    Correct Answer
    A. Money
    Explanation
    Consideration in contract law refers to something of value that is exchanged between parties to a contract. It can be money, goods, services, or even a promise to do or not do something. In this case, money is an example of consideration because it is something of value that is given in exchange for a product or service.

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  • 12. 

    A contract is 

    • A.

      An agreement between two or more persons to exchange something of value

    • B.

      Never heard of it before

    • C.

      An obligation to pay another person's legal debts

    • D.

      An agreement to pay another person money

    Correct Answer
    A. An agreement between two or more persons to exchange something of value
    Explanation
    This answer is correct because a contract is indeed an agreement between two or more persons to exchange something of value. In a contract, both parties agree to fulfill certain obligations or provide certain goods or services in exchange for something else. This exchange can be monetary or non-monetary, and it forms a legally binding agreement between the parties involved.

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  • 13. 

    If Kara was intoxicated when she signed a contract, the contract is enforceable and she is out of luck.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    If Kara was intoxicated when she signed a contract, the contract is not enforceable and she is not out of luck. Intoxication can impair a person's judgment and decision-making abilities, making it unfair to hold them legally responsible for a contract they entered into while intoxicated. In such cases, the contract is typically considered voidable, meaning that Kara would have the option to cancel or void the contract if she can prove that her intoxication affected her ability to understand the terms and consequences of the agreement.

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  • 14. 

    A contract for __________________________ must be in writing to be enforceable.

    • A.

      The sale of land

    • B.

      The sale of goods priced at under $500

    • C.

      The sale of personal property

    • D.

      Agreements that can be performed within one year of the date of the contract

    Correct Answer
    A. The sale of land
    Explanation
    In order for a contract for the sale of land to be enforceable, it must be in writing. This is because the sale of land is a significant transaction that involves a large amount of money and property. Having a written contract ensures that both parties are clear about the terms and conditions of the sale and protects their rights and interests. It also provides a legal document that can be used as evidence in case of any disputes or disagreements in the future.

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  • 15. 

    Aidan sells some stolen iPads for Roger.  Aidan knows the items are stolen.  Aidan refuses to give the money to Roger. What can Roger do?

    • A.

      Cannot enforce the contract because the contract is illegal

    • B.

      Sue Aidan for the money

    • C.

      Enforce the contract with Aidan to get his money

    • D.

      Option 4

    Correct Answer
    A. Cannot enforce the contract because the contract is illegal
    Explanation
    Roger cannot enforce the contract because it is illegal. Since the iPads are stolen and Aidan is aware of this fact, the contract is considered illegal and therefore unenforceable. This means that Roger cannot legally compel Aidan to give him the money for the stolen iPads.

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  • 16. 

    What is a valid acceptance to a contract?

    • A.

      The person orally agrees to pay the offered price

    • B.

      The person says that she will think about it overnight

    • C.

      The person asks for a lower price

    • D.

      The person states that she is able to pay the offered price

    Correct Answer
    A. The person orally agrees to pay the offered price
    Explanation
    A valid acceptance to a contract occurs when the person orally agrees to pay the offered price. This means that the person explicitly and unambiguously accepts the terms of the contract, including the price stated. It indicates their intention to be bound by the contract and fulfill their obligation to pay the agreed-upon amount. The other options mentioned, such as thinking about it overnight, asking for a lower price, or stating the ability to pay the offered price, do not constitute a valid acceptance as they do not clearly indicate an unconditional agreement to the terms of the contract.

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  • 17. 

    What is a consideration?

    • A.

      Something of value

    • B.

      A realistic offer

    • C.

      Awareness of the circumstances of the other party to a contract

    • D.

      Exact acceptance of the terms of the offer

    Correct Answer
    A. Something of value
    Explanation
    Consideration refers to something of value that is exchanged between parties in a contract. It can be in the form of money, goods, services, or even a promise to do or not do something. In order for a contract to be legally binding, there must be consideration from both parties. This means that each party must give up something of value or make a sacrifice in order to receive the benefits of the contract. Therefore, "something of value" is a fitting explanation for the term consideration.

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  • 18. 

    Which of the following is a characteristic of an offer?

    • A.

      The offer is made to a specific person

    • B.

      The seller accepts the price asked by the buyer

    • C.

      The offer is not directed at anyone in particular

    • D.

      The offer establishes a legally binding contract

    Correct Answer
    A. The offer is made to a specific person
    Explanation
    An offer being made to a specific person is a characteristic of an offer. This means that the offer is directed towards a particular individual or group and is not open to anyone in general. This characteristic is important because it shows that the offeror has a specific intention to enter into a contract with a particular party, and it allows for clear communication and acceptance of the offer. It also helps in establishing the legal enforceability of the contract as it demonstrates a clear intention to create a legally binding agreement.

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  • 19. 

    Name three elements of a contract

    Correct Answer
    offer, acceptance and consideration
    Explanation
    The three elements of a contract are offer, acceptance, and consideration. An offer is a proposal made by one party to another, expressing a willingness to enter into a contract. Acceptance is the agreement by the other party to the terms of the offer. Consideration refers to something of value exchanged between the parties, such as money, goods, or services. These three elements are essential for a contract to be legally binding and enforceable.

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  • 20. 

    A minor cane make contracts but as a general rule they cannot be forced to carry out their promises and may cancel or refuse to honor their contracts.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Minors, being individuals under the age of majority, generally lack the legal capacity to enter into contracts. While they can make contracts, their consent can be considered voidable, meaning they have the option to cancel or refuse to honor their contractual obligations. This is because the law seeks to protect minors from entering into agreements that they may not fully understand or that may be detrimental to their well-being. Therefore, the statement that minors can make contracts but cannot be forced to carry them out is true.

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Quiz Review Timeline +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Apr 07, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Apr 11, 2014
    Quiz Created by
    Alyson Greenfield
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