Question

In: Operations Management

True or False: Because Dave did not know that the car he bought was stolen, he...

True or False:

  1. Because Dave did not know that the car he bought was stolen, he did not warrant title when he resold it to John.                                                                                                                              
  2. To recover on warranty, a buyer must reject or revoke any acceptance of goods.                                         
  3. D buys a crock pot from Q-Mart. It leaks, soaks an electrical cord, starts a fire and burns D. D can’t recover from Q-Mart more than the crock’s replacement cost since his burns weren’t foreseeable by Q-Mart.                                           
  4. A written warranty for consumer products may not limit the duration of implied warranties.                                                                                                            
  5. The seller of a new refrigerator cannot limit the duration of the warranties of fitness and merchantability while designating its warranty as “full.’                  

6. Warranty disclaimers have great potential for unconscionable application in standardized form contracts.

Solutions

Expert Solution

True or False:

1. Because Dave did not know that the car he bought was stolen, he did not warrant the title when he resold it to John.

Answer: False.

It is false because without taking the warranty title how can Dave sell a car.

                                                                                                                     

2. To recover on a warranty, a buyer must reject or revoke any acceptance of goods.

Answer: True.

Because a warranty means it should be free from any defects. And if any defect is seen a product can be rejected while buying it.                              

          

3. D buys a crockpot from Q-Mart. It leaks, soaks an electrical cord, starts a fire and burns D. D can’t recover from Q-Mart more than the crock’s replacement cost since his burns weren’t foreseeable by Q-Mart.

Answer: True.

Because burn is consequential damage which cannot be foreseen at the time of selling a product.                                         

4. A written warranty for consumer products may not limit the duration of implied warranties.

Answer: False.

Because warranties have a limitation period. And, expressed or implied warranty both are a part of it.                                                                                                            

5. The seller of a new refrigerator cannot limit the duration of the warranties of fitness and merchantability while designating its warranty as “full.’                  

Answer: False.

Because every product has a life span based on the quality of manufacturing.

6. Warranty disclaimers have great potential for unconscionable application in standardized form contracts.

Answer: True.

Because a warranty disclaimer limits the conscious decisions of the buyer.


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