Conditions and Warranties: Definition, Distinction, and Breach

Question 1

Which of the following is NOT a typical characteristic of an express warranty?

Accepted Answer

It does not survive acceptance of the goods.

Answer

It is stated explicitly in the contract.

Answer

It relates to the nature, quality, or characteristics of the goods.

Answer

It can be created through oral statements.

Question 2

What is the primary consequence of a breach of a material condition?

Accepted Answer

The non-breaching party has the right to cancel the contract.

Answer

The non-breaching party has the right to damages.

Answer

The contract is void from the beginning.

Answer

The non-breaching party has no remedies.

Question 3

Which of the following is NOT considered a type of condition precedent?

Accepted Answer

Mutual satisfaction with the goods

Answer

Payment of the purchase price

Answer

Delivery of the goods

Answer

Prior approval by a third party

Question 4

What is the main effect of a breach of an implied warranty of merchantability?

Accepted Answer

The buyer can recover damages for any losses caused by the breach.

Answer

The buyer can return the goods for a full refund.

Answer

The contract is void from the beginning.

Answer

There is no remedy for breach of an implied warranty of merchantability.

Question 5

What is the primary distinction between a warranty and a representation in contract law?

Accepted Answer

A warranty is binding on the seller, while a representation is not.

Answer

A warranty is made after the contract is formed, while a representation is made before.

Answer

A representation is a promise, while a warranty is not.

Answer

There is no meaningful difference between a warranty and a representation.

Question 6

What is the general effect of a breach of a condition subsequent?

Accepted Answer

The contract is terminated.

Answer

The non-breaching party has the right to damages.

Answer

The contract is void from the beginning.

Answer

There is no effect.

Question 7

Which of the following is NOT a characteristic of a material condition?

Accepted Answer

The condition is trivial or insignificant.

Answer

It is a fundamental term of the contract.

Answer

Breach of the condition goes to the heart of the contract.

Answer

The parties must have intended the condition to be material.

Question 8

What is the essential element of an implied warranty of fitness for a particular purpose?

Accepted Answer

The seller must know or have reason to know the buyer's intended use for the goods.

Answer

The seller must warrant that the goods are of merchantable quality.

Answer

The seller must warrant that the goods are free from defects.

Answer

There is no implied warranty of fitness for a particular purpose.

Question 9

What is the defining characteristic that distinguishes a condition from a warranty in a contract?

Accepted Answer

A condition pertains to a more substantial aspect of the agreement than a warranty.

Answer

A warranty must be stated explicitly within the contract while a condition need not be.

Answer

A condition is a contractual provision that is implied by law whereas a warranty must be expressly stated.

Answer

A warranty is a term that goes to the essence of the contract, while a condition is a less important term.

Question 10

When a condition of a contract is breached, what is the primary legal recourse available to the injured party?

Accepted Answer

The injured party can rescind the contract and seek a refund.

Answer

The injured party is entitled to recover monetary damages for their losses.

Answer

The injured party can compel the breaching party to fulfill their contractual obligations.

Answer

The injured party has no legal recourse for breach of a condition.

Question 11

Which of the following is NOT recognized as an implied warranty in contract law?

Accepted Answer

Warranty of habitability

Answer

Warranty of merchantability

Answer

Warranty of fitness for a particular purpose

Answer

Warranty of title

Question 12

What is the primary function of a disclaimer of warranty in a contract?

Accepted Answer

To limit the seller's liability in the event of a breach of warranty.

Answer

To shift the risk of loss from the seller to the buyer.

Answer

To create an implied warranty that was not previously expressed.

Answer

To terminate the contract if a warranty is breached.

Question 13

Which of the following factors is NOT relevant in determining whether a contractual term is classified as a condition or a warranty?

Accepted Answer

The subjective intentions of the parties.

Answer

The significance of the term to the parties involved.

Answer

The specific wording used in the contract.

Answer

The broader context of the contractual agreement.

Question 14

Which of the following is considered a material breach of contract?

Accepted Answer

A breach that substantially impairs the value of the contract to the non-breaching party

Answer

A breach that causes minor inconvenience to the non-breaching party

Answer

A breach that is excused due to impossibility of performance

Answer

A breach that is waived by the non-breaching party

Question 15

What is the primary distinction between a condition and a warranty in contract law?

Accepted Answer

Conditions give rise to a right to rescind the contract, while warranties do not.

Answer

Conditions are more important than warranties.

Answer

Warranties are more important than conditions.

Answer

Conditions do not give rise to a right to rescind the contract, while warranties do.

Question 16

Which of the following is a valid disclaimer of warranty?

Accepted Answer

A disclaimer that is clear and conspicuous

Answer

A disclaimer that is buried in the fine print of the contract

Answer

A disclaimer that is made orally after the contract has been formed

Answer

A disclaimer that is made after the goods have been delivered to the buyer

Question 17

What is the difference between an express warranty and an implied warranty?

Accepted Answer

An express warranty is created by the seller's statements or promises, while an implied warranty is created by law.

Answer

An implied warranty is created by the seller's statements or promises, while an express warranty is created by law.

Answer

There is no difference between an express warranty and an implied warranty.

Answer

Express warranties are always more important than implied warranties.

Question 18

True or False: Conditions and warranties are mutually exclusive categories in contract law.

Accepted Answer

False

Answer

True

Question 19

Distinguish between express and implied warranties based on their source of creation.

Accepted Answer

Express warranties arise from the seller's explicit statements or actions, while implied warranties are provided by the law.

Answer

Implied warranties arise from the seller's explicit statements or actions, while express warranties are provided by the law.

Answer

Express warranties are always written, whereas implied warranties are unwritten.

Answer

Implied warranties are always written, whereas express warranties are unwritten.

Question 20

Identify an example of an implied warranty provided by law.

Accepted Answer

Warranty of Merchantability

Answer

Warranty of Express Purpose

Answer

Limited Warranty

Answer

Extended Warranty

Question 21

Evaluate the survival of warranties after acceptance of the goods.

Accepted Answer

Warranties may survive acceptance of the goods in certain limited circumstances.

Answer

Warranties generally do not survive acceptance of the goods.

Answer

Warranties always survive acceptance of the goods.

Answer

The survival of warranties after acceptance of the goods depends on the type of warranty.

Question 22

A contract for the sale of a painting includes a warranty that the painting is an original. If the painting turns out to be a copy, the breach of the warranty is:

Accepted Answer

Material

Answer

Immaterial

Answer

Minor

Answer

Fundamental

Question 23

Which of the following is a consequence of the breach of a condition in a contract?

Accepted Answer

The non-breaching party has the right to terminate the contract.

Answer

The non-breaching party is entitled to specific performance.

Answer

The non-breaching party is only entitled to damages.

Answer

The contract remains in effect with no further obligations.

Question 24

Which of the following is NOT an exception to the parol evidence rule?

Accepted Answer

To prove a warranty that contradicts the written contract.

Answer

To prove fraud or duress.

Answer

To prove a condition precedent to the contract.

Answer

To prove a subsequent modification of the contract.

Question 25

A contract for the sale of a car includes an express warranty that the car will get 25 miles per gallon. If the car actually gets only 20 miles per gallon, the buyer:

Accepted Answer

Can sue for breach of warranty and recover damages.

Answer

Can return the car and get a full refund.

Answer

Can cancel the contract and get a replacement car.

Answer

Has no legal recourse.

Question 26

A condition precedent is:

Accepted Answer

An event that must occur before the contract becomes effective.

Answer

A condition that is created by the court.

Answer

A condition that is implied by law.

Answer

A condition that is agreed upon by the parties.

Question 27

How has the Uniform Commercial Code (UCC) influenced the legal landscape governing conditions and warranties in the United States?

Accepted Answer

The UCC has fostered uniformity in the laws governing conditions and warranties nationwide.

Answer

The UCC has abolished the distinction between conditions and warranties.

Answer

The UCC has transformed all warranties into implied warranties.

Answer

The UCC has hindered buyers' ability to seek compensation for warranty breaches.

Question 28

Define 'privity of contract' and explain its implications for conditions and warranties in contracts.

Accepted Answer

Privity of contract limits the ability of third parties to sue for breach of conditions or warranties, as only parties to a contract are bound by its terms.

Answer

Privity of contract does not apply to conditions, as any party can seek legal recourse for breach of a condition regardless of their involvement in the contract.

Answer

Privity of contract does not apply to warranties, as third parties can still benefit from and enforce warranties even if they are not party to the contract.

Answer

Privity of contract is irrelevant in the context of conditions and warranties, as both can be enforced by third parties regardless of their involvement in the contract.

Question 29

In a breach of implied warranty case, what is the primary purpose of expert testimony?

Accepted Answer

To establish the industry standard of care

Answer

To calculate the damages incurred by the plaintiff

Answer

To interpret the specific terms of the contract

Answer

To prove the defendant's malicious intent

Question 30

**Improved:** Which of the following is a key characteristic of a condition in a contract?

Accepted Answer

**Improved:** Breach gives the non-breaching party the option to terminate the contract

Answer

**Improved:** Breach entitles the non-breaching party to recover damages only

Answer

**Improved:** Breach does not give rise to any legal consequences

Question 31

**Improved:** A warranty in a contract can be best described as a:

Accepted Answer

**Improved:** Promise that the goods or services will meet certain standards

Answer

**Improved:** Condition that must be fulfilled before the contract is formed

Answer

**Improved:** Term that is essential to the performance of the contract

Question 32

**Improved:** Which of the following is an example of an express warranty?

Accepted Answer

**Improved:** The seller states that the car is 'in excellent condition'

Answer

**Improved:** The seller implies that the car is 'fit for ordinary driving'

Answer

**Improved:** The seller disclaims all warranties

Question 33

**Improved:** When does a breach of warranty typically occur?

Accepted Answer

**Improved:** When the goods fail to meet the promised or implied standards

Answer

**Improved:** When the buyer discovers the breach

Answer

**Improved:** When the seller knew or should have known about the breach

Question 34

**Improved:** Which of the following is a limitation on the implied warranty of merchantability?

Accepted Answer

**Improved:** The buyer must have had an opportunity to inspect the goods before purchase

Answer

**Improved:** The warranty is only valid for a limited period of time

Answer

**Improved:** The warranty only applies to new goods

Question 35

Which of the following accurately defines an express warranty?

Accepted Answer

A distinct and specific promise made by the seller regarding the product's particular characteristics or quality

Answer

A legal guarantee that the product will be suitable for its intended purpose

Answer

A general statement made by the seller that the product will meet the buyer's expectations

Question 36

What are the potential consequences of breaching a contractual condition?

Accepted Answer

The non-breaching party may terminate the contract and seek legal remedies, such as damages

Answer

The non-breaching party is only entitled to specific performance of the contract

Answer

The contract remains valid, but the breaching party faces no legal consequences

Question 37

Which of the following is NOT a recognized type of implied warranty in contract law?

Accepted Answer

Warranty of aesthetics

Answer

Warranty of title

Answer

Warranty of fitness for a particular purpose

Answer

Warranty of merchantability

Question 38

How does a warranty differ from a representation in the context of contract law?

Accepted Answer

A warranty is a contractual promise that gives rise to legal obligations, while a representation is a statement of fact that may induce the other party to enter into the contract but does not create a legal obligation

Answer

A warranty is always express, whereas a representation can be either express or implied

Question 39

What is the primary purpose of a warranty disclaimer?

Accepted Answer

To limit or exclude the seller's legal liability for breach of warranty

Answer

To create an express warranty for the goods

Answer

To transfer the risk of loss to the buyer

Question 40

What are the potential legal remedies available to a buyer who has suffered a breach of warranty of merchantability?

Accepted Answer

The buyer may reject the goods or accept them and seek damages

Answer

The warranty is breached only if the goods are proven to be beyond repair

Answer

The buyer is entitled to terminate the contract and demand specific performance

Question 41

What is the fundamental difference between an express warranty and an implied warranty in contract law?

Accepted Answer

Express warranties are explicitly stated in the contract, while implied warranties are created by operation of law based on the parties' presumed intent

Answer

Express warranties are always written, whereas implied warranties can be either written or oral

Question 42

Which of the following is a key distinction between a condition and a warranty?

Accepted Answer

Breach of a condition gives rise to a right to terminate the contract, while breach of a warranty does not.

Answer

Conditions are implied by law, while warranties are created by the parties.

Answer

Conditions are always material breaches.

Answer

Conditions are independent promises, while warranties are subordinate promises.

Question 43

A used car dealer sells a car with an express warranty that it has no major mechanical defects. The car breaks down within a month due to a faulty transmission. Which of the following is the most likely outcome?

Accepted Answer

The buyer can recover damages for the cost of repairing the transmission or terminate the contract and recover the purchase price.

Answer

The buyer has no legal recourse because the car was sold as used.

Answer

The buyer can only recover damages for the difference in value between the car as warranted and the car as delivered.

Question 44

Under the Uniform Commercial Code, which of the following is NOT an implied warranty of merchantability?

Accepted Answer

The goods are of the highest possible quality.

Answer

The goods are free from defects that would make them unsafe for their intended use.

Answer

The goods are fit for the ordinary purpose for which they are used.

Question 45

A consumer purchases a new refrigerator that comes with an express warranty for one year. After 14 months, the refrigerator stops working. Which of the following is true?

Accepted Answer

The consumer may still have recourse under an implied warranty of merchantability or fitness for a particular purpose.

Answer

The consumer has no legal recourse because the express warranty has expired.

Answer

The consumer can terminate the contract and recover the purchase price.

Question 46

A buyer purchases a painting from an art gallery with an express warranty that it is an original work by a renowned artist. The buyer later discovers that the painting is a forgery. Which of the following remedies is available to the buyer?

Accepted Answer

Rescission of the contract and recovery of the purchase price, or damages equal to the difference in value between the painting as warranted and as a forgery.

Answer

Specific performance, requiring the seller to deliver an original painting.

Answer

Damages equal to the cost of restoring the painting to its original condition.

Question 47

Which of the following statements about conditions precedent is true?

Accepted Answer

They must occur before a duty to perform arises, and they can be waived by the parties.

Answer

They are implied by law in all contracts.

Answer

They can never be waived by the parties.

Answer

They are always independent promises.

Question 48

A contract for the sale of a house includes a condition that the buyer must obtain a mortgage within 30 days. If the buyer fails to obtain a mortgage within that time frame, which of the following is true?

Accepted Answer

The seller has the right to terminate the contract, and the buyer may lose their earnest money deposit.

Answer

The contract is void ab initio.

Answer

The buyer is still obligated to purchase the house even if they cannot obtain a mortgage.

Question 49

A seller conveys property with a general warranty deed. Which of the following breaches of warranty would give rise to a cause of action?

Accepted Answer

The seller did not have good title to the property, or the property was subject to an undisclosed easement.

Answer

The property was in need of repairs.

Answer

The property was smaller than the seller represented.

Question 50

Which of the following is NOT a characteristic of an express warranty?

Accepted Answer

It is implied by law.

Answer

It can be disclaimed or modified by agreement.

Answer

It is created by the seller's statement of fact.

Answer

It is part of the basis of the bargain.

Question 51

A seller's statement that a used car is in 'good condition' is most likely:

Accepted Answer

An express warranty.

Answer

An implied warranty of fitness for a particular purpose.

Answer

An implied warranty of merchantability.

Answer

Neither an express nor an implied warranty.

Question 52

Which of the following is a consequence of breaching an express warranty?

Accepted Answer

Damages for the difference in value between the goods as warranted and as delivered.

Answer

Rescission of the contract.

Answer

Specific performance.

Question 53

An implied warranty of merchantability:

Accepted Answer

Guarantees that goods are fit for the ordinary purpose for which they are used.

Answer

Guarantees that goods are free from defects.

Answer

Can only be created by express agreement.

Question 54

Which of the following is NOT a defense to a breach of implied warranty claim?

Accepted Answer

The buyer knew of the defect at the time of purchase.

Answer

The defect was caused by the buyer's misuse.

Answer

The seller did not know of the defect.

Question 55

A condition in a contract is a provision that:

Accepted Answer

Is a fundamental term that, if not met, allows the non-breaching party to terminate the contract.

Answer

Is always implied by law.

Answer

Can be breached without giving rise to a right to rescind.

Question 56

Which of the following is a consequence of breaching a condition?

Accepted Answer

The non-breaching party may rescind the contract.

Answer

Injunction.

Answer

Damages for the difference in value between the goods as warranted and as delivered.

Answer

Specific performance.

Question 57

Which of the following is a factor used to distinguish between a condition and a warranty?

Accepted Answer

The parties' intent as expressed in the contract.

Answer

Whether the breach is material.

Answer

The importance of the provision to the non-breaching party.

Question 58

A buyer purchases a car with the express warranty that it has a certain fuel efficiency rating. If the car does not meet the promised rating, the buyer may:

Accepted Answer

Sue for breach of express warranty.

Answer

Sue for breach of implied warranty of merchantability.

Answer

Rescind the contract.

Answer

None of the above.

Question 59

Which of the following statements about conditions and warranties is true?

Accepted Answer

Conditions are generally more important than warranties, as a breach of a condition can allow the non-breaching party to terminate the contract.

Answer

Conditions can never be breached.

Answer

Warranties are always implied by law.