1. Which of the following does not create an express warranty

A clothing salesperson telling a customer: "You look like a movie star in that outfit."

A label on a step ladder claiming that it will hold 350 pounds.

A label on a computer that says :"500GB Hard Drive"

An art expert at a major auction house identifying a print as a Dore worth $12,000.

2. Which of the following will create an express warranty in a sales transaction?

A catalogue description of the product

The statements on a product's label

Blueprints of a product

All of the above create express warranties

3. The warranty that enters the contract as part of the bargained-for-exchange is a (n) ____________warranty.

Conditional

Implied

Absolute

Express

4. The traditional doctrine that only the parties to a contract can sue over the contract is __________ of contract.

Liberty

Freedom

Liability

Privity

5. A warranty that is imposed on the sales transaction as a matter of law and public policy is a (n) _________warranty.

Conditional

Implied

Absolute

Express

6. Allen's Auto Mart, a large car dealership, is upgrading its inventory tracking and billing system. It sold its computers, printers and fax machines to Rods'n'Reels, a local retailer of sporting goods. One of the computers and two of the faxes have stopped working. Does Rods'n'Reels have a claim against Allen's for breach of an implied warranty of merchantability?

No, used goods are never covered by the implied warranty of merchantability

No, because Rods'n'Reels is itself a merchant it is not protected by the implied warranty of merchantability

No, Allen's is only a merchant of cars and no warranty of merchantability will be implied for other goods it may sell

Yes, the warranty of merchantability is implied in every sale by every seller unless it is specifically disclaimed.