Business Law Chapter 23

* Question 1

10 out of 10 points

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| Before buying paint from a paint store, Dustin, a college professor, asked the salesperson if the paint could be used safely to paint the inside of his fireplace. The salesperson said that it was heat resistant paint and could be used for that purpose. Which of the following warranties will apply to the sales transaction, taken as a whole, between Dustin and the paint store?Answer | | | |

| Selected Answer: |   An express warranty, a warranty of title, an implied warranty of fitness for a particular purpose, and an implied warranty of merchantability. |

Correct Answer: |   An express warranty, a warranty of title, an implied warranty of fitness for a particular purpose, and an implied warranty of merchantability. |

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* Question 2

10 out of 10 points

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| Mary bought a riding mower from Local Dealer for $3,000. She put $500 down, and Local financed the rest of the purchase. Mary is to pay $100 a month, and Local took a security interest in the mower until it is paid for. Local has the right to repossess the mower if Mary stops making payments on the loan. When Mary sold the mower to Neighbor, she told her about Local’s security interest. Has Mary breached any warranties by selling the mower to Neighbor, which was subject to Local’s security interest?Answer | | | |

| Selected Answer: |   No, because of her disclosure she breached no warranties. |

Correct Answer: |   No, because of her disclosure she breached no warranties. |

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* Question 3

10 out of 10 points

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| Which of the following will create an express warranty in a sales transaction?Answer | | | |

| Selected Answer: |   All of the above create express warranties. |

Correct Answer: |   All of the above create express warranties. |

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* Question 4

10 out of 10 points

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| Sid bought a hammer for $1 at a local dollar store. When he tried to drive a spike into a...