Chapter 20-Work Set TRUE-FALSE QUESTIONS A contract cannot mvolve both an implied warranty of merchantability and an implied wat for a particular purpose. A seller's best protection from being held accountable for express statements is not to make them place. 3. A clear, conspicuous, written statement brought to a buyer's attention when a contract is formed can disclaim all warranties not contained in the written contract. 4. To disclaim the implied warranty of merchantability, a merchant must mention "merchantability 5. Whether or not a buyer examines goods before entering into a contract, there is an implied wattanty w respect to defects that an examination would reveal. 6. Privity of contract is required to hold a manufacturer liable in a product liability action based on negligence 7. In a defense of comparative negligence, an injured party's failure to exercise reasonable care against a known defect will be considered in determining liability. 8. Under the doctrine of strict liability, a defendant is liable for the results of his or her acts only if he or she intended those results. 9. Promises of fact made during the bargaining process are express warranties. TIOMIS Chapter 23-Work Set TRUE FALSE QUESTIONS 1. Every person who posses Every person who possesses an instrument is a holder. A holder who takes an instrument for value in good faith, and without notice is a bold (HDC). 4 Personal defenses can be raised to avoid payment to an HDC. For HDC status, good faith means an honest belief that an instrument is not defective Knowing that an instrument has been dishonored puts a holder on notice, and he or she cannot become HDC. 6. Generally, no one is liable on an instrument unless his or her signature appears on it. 7. Drawers are secondarily liable. 8. An unauthorized signature usually binds the person whose name is forged. MULTIPLE-CHOICE QUESTIONS 1. Don signs a note that states, Payable in thirty days." The note is dated March 2, which means it is due April 1. jo the note on April 12. She is Le naid for the note at naid