Question 1

Bradley buys a television set that turns out to be stolen.He can sue the seller for breach of warranty.

Accepted Answer

A) True 
 B)False  True

Question 2

The liability of manufacturers and other sellers of goods for a defective product may be based on all but which of the following?

Accepted Answer

A) Negligence and misrepresentation 
B) Violation of a statutory duty 
C) Warranty and criminal liability 
D) Strict liability in tort 
A) Negligence and misrepresentation 
B) Violation of a statutory duty 
C) Warranty and criminal liability 
D) Strict liability in tort C

Question 3

Karen decided to sell her stair step exercise machine, because she wasn't using it as much as she thought she would. Her friend Lydia bought it from Karen for $100.If the first day that Lydia used the stair stepper it fell apart, injuring
Lydia's ankle:

Accepted Answer

A) Lydia can sue Karen for breach of the warranty of merchantability, because the stair stepper is not fit for its ordinary purpose. 
B) Karen can sue the manufacturer for breach of the warranty of merchantability, because she was the original buyer. 
C) Lydia cannot sue Karen for warranting that the stair stepper is reasonably fit for its ordinary purpose, because Karen is not a merchant. 
D) Lydia cannot sue Karen, because they are not in privity of contract. 
A) Lydia can sue Karen for breach of the warranty of merchantability, because the stair stepper is not fit for its ordinary purpose. 
B) Karen can sue the manufacturer for breach of the warranty of merchantability, because she was the original buyer. 
C) Lydia cannot sue Karen for warranting that the stair stepper is reasonably fit for its ordinary purpose, because Karen is not a merchant. 
D) Lydia cannot sue Karen, because they are not in privity of contract. C

Question 4

Greg has been in the business of selling encyclopedias for twenty years.Margaret agreed to buy a set if Greg would also bring her a bookcase for them.Greg bought one and sold it to Margaret along with the books.While shelving the books, she ran her hand over the back edge of the shelves and cut herself severely.The wood was not finished on that side and nails were protruding through the shelf.Can Margaret sue Greg under strict liability?

Accepted Answer

A) Yes, because the bookcase was in an unreasonably dangerous condition. 
B) Yes, because the bookcase was defective. 
C) No, because she was not a true consumer under Section 402A. 
D) No, because Greg is not a seller under Section 402A. 
A) Yes, because the bookcase was in an unreasonably dangerous condition. 
B) Yes, because the bookcase was defective. 
C) No, because she was not a true consumer under Section 402A. 
D) No, because Greg is not a seller under Section 402A.

Question 5

The Federal Trade Commission administers the Magnuson-Moss Warranty Act.

Accepted Answer

A) True 
 B)False

Question 6

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 7

Eric bought a new snowmobile from the North Pole Manufacturing Company.After buying the machine, Eric then modified the spark plugs and a few other things in order to soup it up.In February, just after a snowfall, Eric was driving the snowmobile when it tipped over, trapping him beneath it.His leg was severely burned when it lodged against one of the spark plugs.Eric now wants to sue North Pole for strict liability in tort.Eric:

Accepted Answer

A) will likely win the suit, because of the faulty design of the snowmobile. 
B) will likely lose the suit, because the machine has been altered since its manufacture. 
C) has assumed the risk of using the snowmobile. 
D) cannot sue the manufacturer, because horizontal privity is lacking. 
A) will likely win the suit, because of the faulty design of the snowmobile. 
B) will likely lose the suit, because the machine has been altered since its manufacture. 
C) has assumed the risk of using the snowmobile. 
D) cannot sue the manufacturer, because horizontal privity is lacking.

Question 8

The warranty of fitness for a particular purpose:

Accepted Answer

A) is an implied warranty that applies only to merchant sellers. 
B) requires that the seller know that the buyer is relying on the seller's expertise in selecting a product for the buyer's specific purpose. 
C) requires no proof of reliance in a case for breach of warranty. 
D) All of these. 
A) is an implied warranty that applies only to merchant sellers. 
B) requires that the seller know that the buyer is relying on the seller's expertise in selecting a product for the buyer's specific purpose. 
C) requires no proof of reliance in a case for breach of warranty. 
D) All of these.

Question 9

What are the general Code requirements for a disclaimer of warranties? What specific requirements exist for a disclaimer of the warranty of merchantability and the warranty of fitness?

Accepted Answer

The Code calls for a reasonable construc

Question 10

Statements in advertisements and catalogs do not constitute express warranties.

Accepted Answer

A) True 
 B)False

Question 11

An express warranty does not require that the warranty be expressed in written words.

Accepted Answer

A) True 
 B)False

Question 12

Leslie 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 13

Matt tells Ron that the snow boots he is selling offer protection for temperatures of 20° below zero.Ron orders a pair for his trip to Greenland.Upon delivery, Ron sees that the box states "will protect your feet in temperatures down to 30° below zero." The first night's temperature goes down to 27 below.Ron suffers frostbite on all of his toes.Ron then sues for breach of warranty.What is the result?

Accepted Answer

A) Breach, because the later express warranty is valid. 
B) No breach, because Matt's statement was merely opinion. 
C) No breach, because Matt said 20° below zero. 
D) No breach, because Matt is allowed to be wrong. 
A) Breach, because the later express warranty is valid. 
B) No breach, because Matt's statement was merely opinion. 
C) No breach, because Matt said 20° below zero. 
D) No breach, because Matt is allowed to be wrong.

Question 14

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 15

In bringing a warranty action, the buyer must prove:

Accepted Answer

A) whether the warranty was express or implied. 
B) that breach of the warranty proximately caused the loss suffered. 
C) reliance on the affirmations, promises, descriptions, samples, or models the seller made or used. 
D) All of these. 
A) whether the warranty was express or implied. 
B) that breach of the warranty proximately caused the loss suffered. 
C) reliance on the affirmations, promises, descriptions, samples, or models the seller made or used. 
D) All of these.

Question 16

Implied warranties may arise from course of dealing or usage of trade in leases of personal property under Article
2A of the Code, but not in sales of goods under Article 2.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is NOT included within the Code definition of merchantability?

Accepted Answer

A) Reasonably fit for the ordinary purposes for which the goods are used 
B) Pass without objection in the trade under the contract description 
C) In the case of secondhand goods that they be of a quality that matches that of new goods of the same type. 
D) Are of fair, average quality. 
A) Reasonably fit for the ordinary purposes for which the goods are used 
B) Pass without objection in the trade under the contract description 
C) In the case of secondhand goods that they be of a quality that matches that of new goods of the same type. 
D) Are of fair, average quality.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

If the seller of goods is an expert and gives an opinion with regard to the goods, the seller may be liable for breach of warranty.

Accepted Answer

A) True 
 B)False

Question 20

The warranty of merchantability is found in Section 402A of the Restatement of the Law of Torts.

Accepted Answer

A) True 
 B)False

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

Bradley buys a television set that turns out to be stolen.He can sue the seller for breach of warranty.

The liability of manufacturers and other sellers of goods for a defective product may be based on all but which of the following?

Karen decided to sell her stair step exercise machine, because she wasn't using it as much as she thought she would. Her friend Lydia bought it from Karen for $100.If the first day that Lydia used the stair stepper it fell apart, injuring Lydia's ankle:

The Federal Trade Commission administers the Magnuson-Moss Warranty Act.

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

The warranty of fitness for a particular purpose:

What are the general Code requirements for a disclaimer of warranties? What specific requirements exist for a disclaimer of the warranty of merchantability and the warranty of fitness?

Statements in advertisements and catalogs do not constitute express warranties.

An express warranty does not require that the warranty be expressed in written words.

Leslie 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:

In bringing a warranty action, the buyer must prove:

Implied warranties may arise from course of dealing or usage of trade in leases of personal property under Article 2A of the Code, but not in sales of goods under Article 2.

Which of the following is NOT included within the Code definition of merchantability?

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

If the seller of goods is an expert and gives an opinion with regard to the goods, the seller may be liable for breach of warranty.

The warranty of merchantability is found in Section 402A of the Restatement of the Law of Torts.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

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

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

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.

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