When a buyer is sued by a third party holding copyright, trademark, or patent rights in the goods, the title warranty of no infringements has been breached. What must the buyer do?
a. give back the goods to the seller
b. give the goods to the party claiming the infringement
c. Notify the seller of the litigation within a reasonable time.
Assume that the seller agrees to defend and pay the expenses of an infringement lawsuit pursued against the buyer. What must the buyer then do?
a. continue to pay for the litigation
b. turn over control of the litigation to the seller
c. hire a new attorney
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A statement about the of goods usually does not create a warranty.
Ordinarily, statements of opinion do not create warranties unless the seller is an giving an opinion to a layperson.
The reasonableness of the buyer's reliance on a seller's statement appears to be the controlling in determining whether the statement constitutes an express warranty.
A reasonable person is more likely to rely on a written statement made in a(n) than on a statement made orally by a salesperson.
Fill in the blanks with words that would best complete the passage.
criterion psychologist value layperson design size implication expert advertisement
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Normally a seller can disclaim title warranties only by including language in the contract.
In most sales, sellers warrant that the transfer of title is .
The second warranty of title, called no liens, protects buyers who purchase goods that are subject to a creditor's security interest.
A merchant-seller warrants that the buyer takes the goods of infringements from any copyright, trademark, or patent claims of a third person.
Fill in the blanks with words that would best complete the passage.
rightful specific general knowingly good enough free unknowingly