Business Law- Chapter 21 Flashcards Preview

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Flashcards in Business Law- Chapter 21 Deck (16):
1

Warranty

A seller's or lessor's express or implied assurance to a buyer or lessee that the goods sold or leased meet certain quality standards.

2

Express Warranty

A warranty that is created when a seller or leassor makes an affirmation that the goods he is selling or leasing meet certain standards of quality, description, performance, or condition.

3

Statement of Opinion

A commendation of goods, made by a seller or lessor, that does not create an express warranty.

4

Compensatory Damages

Damages that are generally equal to the difference between the value of the goods accepted at the time and place of acceptance.

5

Implied Warranty of Merchantability

Unless properly disclosed, a warranty that is implied that sold or leased goods are fit for the ordinary purpose for which they are sold or leased, as well as other assurances.

6

Implied Warranty of Fitnes for Human Consumption

A warranty that applies to food or drink consumed on or off the premises of restaurants, grocery stores, fast-food outlests, and vending machines.

7

Foreign Substance Test

A test to determine mechantability based on foreign objects found in food.

8

Consumer Expection Test

A test to determine merchantability based on what the average consumer would expect to find in food products.

9

Implied Warranty of Fitness for a Particular Purpose

A warranty that arises where a seller or lessor warrants that the goods will meet the buyer's or lessee's expressed needs.

10

Warranty Disclaimer

A statement that negates express and implied warranties.

11

Conspicuous

A requirement that warranty disclaimers be noticable to the reasonable person.

12

Magnuson-Moss Warranty Act

A federal statute that regulates written warranties on consumer products.

13

Warranty of Good Title

A warranty in which the seller warrants that she has valied title to the goods being sold and that the transfer of title is rightful.

14

Warranty of no Security Interests

A warranty in which sellers of goods warrant that the goods they sell are delivered free from any third-party security interests, liens, or encumbrances that are unknown to the buyer.

15

Warranty against Infringements

An automatic warranty of a seller or lessor who is a merchant who regularly deals in goods of the kind sold or leased which warrants that the goods are delivered free of any third-party patent, trademark, or copyright claim.

16

Warranty against Interference

A warranty in which the lessor warrants that no person holds a claim or an interest in the goods that arose from an act or omission of the lessor that will interfere with the lesse's enjoyment of his leasehold interest.