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BL Ch. 15 Practice

Business Law

QuestionAnswer
True/False A breach of warranty IS a breach of contract True
True/False A breach of warranty refers to the failure of the product as promised in the warranty True
True/False Puffing and warranties are both statements of fact False
True/False New drugs cannot be marketed in this country without FDA approval True
True/False A warranty is a statement about a product's qualities or performance and therefore is not governed by the UCC False, a warranty is an assurance that the seller makes about the product's qualities or performance, and is governed by the UCC
True/False A Warranty against infringement basically requires that goods be fit for the ordinary purposes for which such goods are used False, warranty of merchantability requires that the goods be fit for the ordinary purposes for which such goods are used.
True/False A notice of exclusion is a disclaimer True
True/False The Consumer Product Safety Commission (CPSC) receives reports about product failure from the distributor, the manufacturer, and the consumer True
True/False Violations of the weights and measures laws are only punishable by fines False, they are punishable by fines and imprisonment
True/False A Product liability suit may only be based on a breach of warranty False, can be based on breach of warranty and torts of fraud, negligence, or strict liability
True/False Product liability means appointing responsiblity to person at fault, to compensate buyers, users, and even those standing nearby for injuries caused by a defective product True
True/False Consumer protection often begins with licensing suppliers True
True/False The relationship that exist between contracting parties is referred to as puffing False, privity of contract
True/False The federal trade commission regulates trade throughout the country True
True/False The U.S department of agriculture promotes U.S. innovation and industrial competitiveness by advancing measurement science, standards, and technology in ways that enhance economic security and improve our quality of life. False, National Bureau of Standard
True/False The Consumer Product Safety Commission has authority to issue and enforce safety standards for most consumer products True
Created by: deshanelson