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trimmer and sues the company for product liability based on negligence. To win,

ID: 2800302 • Letter: T

Question

trimmer and sues the company for product liability based on negligence. To win, Brad Able Tool Company makes hedge trimmers. Brad is injured while using an Ahle must show that Able did not use due care with respect to the trimmer. Able misrepresented a material fact regarding the trimmer. Brad was experienced in the use of trimmers Brad was in peivity of contract with Able. endorsed the check over to his wife as a gih. Hank issued a check payable to the order of Mr. John West", Mr. John West a. Mrs. West is a holder in due course (HDC). . Mrs. West is a holder in due course under the "Shelter Rale". c. Mrs. West is not a holder in de course (HDC). 4. None of the above. Which of the following statements is correct regarding the warranty of merchantability arising when there has been a sale of goods by a merchant seller? a. The warranty must be in writing b. The warranty arises when the buyer relies on the seller's skilt in selecting the goods purchased. 6. The warranty cannot be disclaimed. d. The warranty arises as a matter of law when the seller ordinarily sells the goods purchased 33. Hite purchased a painting from Todd, who is not in the business of selling art. Todd tendered delivery of the painting after receiving payment in full from Hite. Hite informed Todd that Hite would be unable to take possession of the painting until later the next day. Thieves stole the painting before Hite returned. The risk of loss: a. Passed to Hite at Todd's tender of delivery. b. Passed to Hite at the time the contract was formed and payment was made. c. Remained with Todd, because the parties agreed on a later delivery. d. Remained with Todd, because Hite had not yet received the painting, 34. The implied warranty of title: a. does not apply when the seller is not a merchant. b. must be in writing C. can be properly disclaimed by all sellers of goods. d. is an expressed warranty.

Explanation / Answer

30.

Able tool company makes hedge trimmers, brad is injured while using an Able Trimmers and sue the company for product liability based on negligence. To win brad must show that Able dis not use due care with respect to the trimmers.

Option (A) is correct answer.

31.

Hank issued a check payable to the “Order of Mr. John West”. Mr. John West endorsed the check over his wife as a gift Mr. west is a holder in due course under the shelter rule.

Option (B) is correct answer.

32.

Warranty of merchantability arising when there has been a sale of goods by a merchant seller. The warranty arises as a matter of law when the seller ordinarily sells the goods purchased.

Option (D) is correct answer.

33.

Hite purchased a painting from Todd who is not in the business of selling art. Todd tendered delivery of the painting after receiving payment in full of Hite. Hite informed Todd that Hite would be unable to take possession of the painting until later that day. Thieves stole the painting before Hite returned. The risk of loss Passed to Hite at todd's tender of delivery.

Option (A) is correct answer.