Question 1

The federal regulation of express warranties:

Accepted Answer

A)  applies only to limited warranties. 
B)  applies to a seller who makes a written express warranty for a consumer product costing more than $10. 
C)  requires all express warranties to be full warranties. 
D)  requires an implied warranty to be designated as either full or limited. 
A)  applies only to limited warranties. 
B)  applies to a seller who makes a written express warranty for a consumer product costing more than $10. 
C)  requires all express warranties to be full warranties. 
D)  requires an implied warranty to be designated as either full or limited. B

Question 2

Manufacturers who prepare goods to the buyer's specifications are under exceptionally stringent warranty obligations for fitness for a particular use.

Accepted Answer

A) True 
 B)False  False

Question 3

A full warranty requires the purchaser to pay for the shipping cost of returning the product for repair.

Accepted Answer

A) True 
 B)False  False

Question 4

An express warranty is a statement of fact about the product that becomes part of the basis of the bargain.

Accepted Answer

A) True 
 B)False

Question 5

An implied warranty arises automatically from the fact a sale has been made.

Accepted Answer

A) True 
 B)False

Question 6

The theories of product liability are mutually exclusive.

Accepted Answer

A) True 
 B)False

Question 7

If a merchant sells a lawn mower that will not cut any type of grass,there is a breach of the warranty of merchantability.

Accepted Answer

A) True 
 B)False

Question 8

Under what type of warranty is the seller obligated to fix or replace a defective product within a reasonable time at no cost to the buyer?

Accepted Answer

A)  full 
B)  express 
C)  limited 
D)  implied 
A)  full 
B)  express 
C)  limited 
D)  implied

Question 9

In order to create an express warranty the seller must use as the words "warrant" or "guarantee."

Accepted Answer

A) True 
 B)False

Question 10

Under the concept of ______,only the original parties to a sales contract could sue each other.

Accepted Answer

A)  exclusivity of contract. 
B)  privity of contract. 
C)  privacy of contract. 
D)  priority of contract. 
A)  exclusivity of contract. 
B)  privity of contract. 
C)  privacy of contract. 
D)  priority of contract.

Question 11

Arthur was looking for a Father's Day gift for his dad,Tony.Tony was a cigar smoker but Arthur was a nonsmoker.Arthur went to a cigar store and was looking around when the proprietor suggested Arthur try a new imported cigar.The proprietor touted this new cigar as "just like the great Cuban cigars." Arthur was reluctant but did light one of the cigars,which had a pleasant aromatic smell and took about five to six minutes to be consumed.On this basis,Arthur bought a box of the cigars and presented them to his father as a gift.When the father smoked one of the cigars,it gave off an acrid smell and was completely consumed in less than two minutes.When Arthur saw this,he was very upset and asked his father to try another.The same situation was repeated with the acrid odor and the cigar burning down very quickly like a cigarette.?After Arthur tried unsuccessfully to return the cigars for a refund,Arthur filed a small claims court action against the store.The case was based on the failure of the purchased cigars to conform to the sample,breach of the implied warranty of merchantability,and the misleading statement "just like the Cuban cigars." Discuss the probable outcome of the case.

Accepted Answer

Depending on the court's interpretation,

Question 12

A disclaimer or exclusion of the warranty of merchantability will be invalid if:

Accepted Answer

A)  the goods cost $500 or more. 
B)  the defects in the goods are obvious to all buyers. 
C)  it is made at the time of the sale. 
D)  it is not conspicuously set forth in a writing. 
A)  the goods cost $500 or more. 
B)  the defects in the goods are obvious to all buyers. 
C)  it is made at the time of the sale. 
D)  it is not conspicuously set forth in a writing.

Question 13

Federal law requires every product sold to have an express warranty.

Accepted Answer

A) True 
 B)False

Question 14

The right to sue for damages sustained from a defective product is reserved exclusively to the original purchaser of the product.

Accepted Answer

A) True 
 B)False

Question 15

A seller cannot be held liable for the breach of an express warranty if the seller honestly believed that the warranted statement was true.

Accepted Answer

A) True 
 B)False

Question 16

An inadequate warning label about a product's dangers can be considered a defective product.

Accepted Answer

A) True 
 B)False

Question 17

With used or secondhand goods,what is fit for normal use is generally:

Accepted Answer

A)  a higher standard than with new goods. 
B)  a lower standard than with new goods. 
C)  the same standard as with new goods. 
D)  not applicable since the goods are not new. 
A)  a higher standard than with new goods. 
B)  a lower standard than with new goods. 
C)  the same standard as with new goods. 
D)  not applicable since the goods are not new.

Question 18

A disclaimer of warranties made in the manner specified by the Uniform Commercial Code is not unconscionable.

Accepted Answer

A) True 
 B)False

Question 19

A catalog illustration can become the basis of an express warranty.

Accepted Answer

A) True 
 B)False

Question 20

In most instances,the mere fact that a sale was made gives rise to a(n):

Accepted Answer

A)  express warranty. 
B)  limited warranty. 
C)  implied warranty. 
D)  full warranty. 
A)  express warranty. 
B)  limited warranty. 
C)  implied warranty. 
D)  full warranty.

Exam 24: Product Liability: Warranties and Torts

The federal regulation of express warranties:

Manufacturers who prepare goods to the buyer's specifications are under exceptionally stringent warranty obligations for fitness for a particular use.

A full warranty requires the purchaser to pay for the shipping cost of returning the product for repair.

An express warranty is a statement of fact about the product that becomes part of the basis of the bargain.

An implied warranty arises automatically from the fact a sale has been made.

The theories of product liability are mutually exclusive.

If a merchant sells a lawn mower that will not cut any type of grass,there is a breach of the warranty of merchantability.

Under what type of warranty is the seller obligated to fix or replace a defective product within a reasonable time at no cost to the buyer?

In order to create an express warranty the seller must use as the words "warrant" or "guarantee."

Under the concept of ______,only the original parties to a sales contract could sue each other.

A disclaimer or exclusion of the warranty of merchantability will be invalid if:

Federal law requires every product sold to have an express warranty.

The right to sue for damages sustained from a defective product is reserved exclusively to the original purchaser of the product.

A seller cannot be held liable for the breach of an express warranty if the seller honestly believed that the warranted statement was true.

An inadequate warning label about a product's dangers can be considered a defective product.

With used or secondhand goods,what is fit for normal use is generally:

A disclaimer of warranties made in the manner specified by the Uniform Commercial Code is not unconscionable.

A catalog illustration can become the basis of an express warranty.

In most instances,the mere fact that a sale was made gives rise to a(n):

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces and the Law

The Constitution as the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

Crimes

Torts

Intellectual Property Rights and the Internet

The Legal Environmental of International Trade

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Negotiable Instruments and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants' Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents' Estates and Trusts

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