Question 1

Which of the following is not an express warranty?

Accepted Answer

A)  Restating facts or market figures about a product 
B)  The opinion of an expert in a certain field regarding a product in that field 
C)  A statement of the product specifications 
D)  The seller's opinion of the value of goods 
A)  Restating facts or market figures about a product 
B)  The opinion of an expert in a certain field regarding a product in that field 
C)  A statement of the product specifications 
D)  The seller's opinion of the value of goods

Question 2

Section 402A of the Restatement applies only if the defective product is unreasonably dangerous.

Accepted Answer

A) True 
 B)False

Question 3

Daisy purchased 100 flower pots from a local merchant.Warranties which are not included in her sales contract,but exist by "operation of the law," are the:

Accepted Answer

A)  express warranties. 
B)  exclusive warranties. 
C)  quasi warranties. 
D)  implied warranties. 
A)  express warranties. 
B)  exclusive warranties. 
C)  quasi warranties. 
D)  implied warranties.

Question 4

Which of the following products would impose strict liability in tort according to Section 402A?

Accepted Answer

A)  Popcorn containing large amounts of genuine butter 
B)  150-proof Virgin Island rum 
C)  A chain saw sold with the safety shielding removed 
D)  A sports car capable of speeds in excess of 150 MPH 
A)  Popcorn containing large amounts of genuine butter 
B)  150-proof Virgin Island rum 
C)  A chain saw sold with the safety shielding removed 
D)  A sports car capable of speeds in excess of 150 MPH

Question 5

Horizontal privity involves remote sellers within the chain of distribution.

Accepted Answer

A) True 
 B)False

Question 6

An obligation of the merchant-seller that the goods are reasonably fit for general purposes for which they are manufactured and sold,and the goods are of fair,average quality is known as:

Accepted Answer

A)  a warranty of merchantability. 
B)  strict liability. 
C)  an express warranty. 
D)  the warranty of fitness for a particular purpose. 
A)  a warranty of merchantability. 
B)  strict liability. 
C)  an express warranty. 
D)  the warranty of fitness for a particular purpose.

Question 7

A,a wholesale distributor,sells to B,a retail dealer,a set of defective tires manufactured by X,a reputable manufacturer.Both A and B believed the tires to be in perfect condition,although neither party has inspected the tires.C purchases the tires from B and is injured because the defective tires blew out.Who,if anyone,is liable to C in strict liability?

Accepted Answer

A)  A,B,and X share liability to C under strict liability. 
B)  Only X,who manufactured the tires,has strict liability. 
C)  Only B,who sold the defective tires to C,has strict liability. 
D)  No one has strict liability in this case. 
A)  A,B,and X share liability to C under strict liability. 
B)  Only X,who manufactured the tires,has strict liability. 
C)  Only B,who sold the defective tires to C,has strict liability. 
D)  No one has strict liability in this case.

Question 8

Reliance is a necessary element in any breach of warranty case.

Accepted Answer

A) True 
 B)False

Question 9

Statutes of repose were enacted to give consumers more rights against large manufacturers.

Accepted Answer

A) True 
 B)False

Question 10

Jasmyn purchased a used dryer from her next-door neighbor,a landscaper.When she took it home and plugged it in,the dryer burst into flames.The seller in this case is in breach of the implied warranty of merchantability.

Accepted Answer

A) True 
 B)False

Question 11

Implied warranties under the Code:

Accepted Answer

A)  may arise from course of dealing or usage of trade. 
B)  are a result of specific language in the sales contract. 
C)  continue the common law rule of caveat emptor. 
D)  are intended to protect the seller rather than the buyer. 
A)  may arise from course of dealing or usage of trade. 
B)  are a result of specific language in the sales contract. 
C)  continue the common law rule of caveat emptor. 
D)  are intended to protect the seller rather than the buyer.

Question 12

Which of the following is generally NOT a defense to a claim against a manufacturer under 402A?

Accepted Answer

A)  Contributory negligence on the part of the plaintiff 
B)  Express assumption of the risk 
C)  Misuse or abuse of the product 
D)  Subsequent alteration of the product by the plaintiff 
A)  Contributory negligence on the part of the plaintiff 
B)  Express assumption of the risk 
C)  Misuse or abuse of the product 
D)  Subsequent alteration of the product by the plaintiff

Question 13

Product liability exists if the:

Accepted Answer

A)  consumer misuses the product. 
B)  consumer alters the product before he or she uses it. 
C)  product reaches the consumer without substantial change in the condition in which it is sold. 
D)  consumer takes the product gratuitously. 
A)  consumer misuses the product. 
B)  consumer alters the product before he or she uses it. 
C)  product reaches the consumer without substantial change in the condition in which it is sold. 
D)  consumer takes the product gratuitously.

Question 14

Barry buys a car from a dealer,which is sold to him "as is." If the next day,the engine blows up,Barry can sue the dealer for breach of the implied warranty for fitness.

Accepted Answer

A) True 
 B)False

Question 15

The warranty of title for the sale of goods found in Article 2 of the Code:

Accepted Answer

A)  may be excluded with the phrase "as is." 
B)  is labeled as an implied warranty. 
C)  may not be excluded or modified by the seller. 
D)  will apply regardless of whether it is provided for in the contract unless the parties have specifically excluded it or it is excluded by certain circumstances. 
A)  may be excluded with the phrase "as is." 
B)  is labeled as an implied warranty. 
C)  may not be excluded or modified by the seller. 
D)  will apply regardless of whether it is provided for in the contract unless the parties have specifically excluded it or it is excluded by certain circumstances.

Question 16

Lucille bought a new lawn mower on sale at a local discount store.The mower did not come with an instruction book,nor did it have warning labels placed near dangerous parts of the mower.If Lucille injures herself while using this mower,she can claim that she purchased a defective product.

Accepted Answer

A) True 
 B)False

Question 17

The Code does not label the warranty of title as an implied warranty,despite the fact that it arises out of the sale and not from the words or conduct of the parties.

Accepted Answer

A) True 
 B)False

Question 18

Under the Magnuson-Moss Warranty Act,a seller who makes a written warranty cannot disclaim any implied warranty.

Accepted Answer

A) True 
 B)False

Exam 24: Products Liability: Warranties and Strict Liability in Tort

Which of the following is not an express warranty?

Section 402A of the Restatement applies only if the defective product is unreasonably dangerous.

Daisy purchased 100 flower pots from a local merchant.Warranties which are not included in her sales contract,but exist by "operation of the law," are the:

Which of the following products would impose strict liability in tort according to Section 402A?

Horizontal privity involves remote sellers within the chain of distribution.

An obligation of the merchant-seller that the goods are reasonably fit for general purposes for which they are manufactured and sold,and the goods are of fair,average quality is known as:

Reliance is a necessary element in any breach of warranty case.

Statutes of repose were enacted to give consumers more rights against large manufacturers.

Jasmyn purchased a used dryer from her next-door neighbor,a landscaper.When she took it home and plugged it in,the dryer burst into flames.The seller in this case is in breach of the implied warranty of merchantability.

Implied warranties under the Code:

Which of the following is generally NOT a defense to a claim against a manufacturer under 402A?

Product liability exists if the:

Barry buys a car from a dealer,which is sold to him "as is." If the next day,the engine blows up,Barry can sue the dealer for breach of the implied warranty for fitness.

The warranty of title for the sale of goods found in Article 2 of the Code:

Lucille bought a new lawn mower on sale at a local discount store.The mower did not come with an instruction book,nor did it have warning labels placed near dangerous parts of the mower.If Lucille injures herself while using this mower,she can claim that she purchased a defective product.

The Code does not label the warranty of title as an implied warranty,despite the fact that it arises out of the sale and not from the words or conduct of the parties.

Under the Magnuson-Moss Warranty Act,a seller who makes a written warranty cannot disclaim any implied warranty.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

A: Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance,breach,and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits,collections,and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature,formation,and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection Double

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property,property Insurance,bailments,and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

Legal Terminology: Understanding Criminal and Civil Law Systems

Contract Law Terminology

Exploring the Legal Concepts of Agency and Fiduciary Duty

Understanding Key Legal Concepts in Sales and Contracts

Understanding the Terminology of Banking and Finance: Key Concepts and Definitions

Exploring Legal Concepts and Processes in Business Partnerships

Understanding Corporate Law: A Guide to Ultra Vires Acts, Subscribers, Debt Securities, and More

Understanding Key Terms in Secured Transactions and Bankruptcy Law

Legal Topics and Terms

Legal Topics in Property Ownership and Management

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