Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

Contributory negligence is not a defense to a warranty of merchantability cause of action.

Accepted Answer

A) True 
 B)False  True

Question 3

Mark tells Leslie that his sweeper has a four-stage allergen filtration system because he was told that when he bought it. Leslie buys the sweeper from Mark, but it does not have the four-stage allergen filtration system. Is Mark liable for breach of warranty?

Accepted Answer

A)  No, because he did not know his statement was false. 
B)  No, because he did not promise her that the sweeper would filter virtually all allergens because of the four stages. 
C)  Yes, because the statement was false. 
D)  Yes, because Mark was not acting in good faith. 
A)  No, because he did not know his statement was false. 
B)  No, because he did not promise her that the sweeper would filter virtually all allergens because of the four stages. 
C)  Yes, because the statement was false. 
D)  Yes, because Mark was not acting in good faith. C

Question 4

In the Womco, Inc. v. Navistar International Corporation case, the court stated the disclaimer of the warranty of:

Accepted Answer

A)  merchantability must be written and mention the word "merchantability." 
B)  merchantability may be oral. 
C)  fitness for a particular purpose may be oral or written. 
D)  merchantability or fitness for a particular purpose must be conspicuous, which requires that the disclaimer be in a larger type and a different color. 
A)  merchantability must be written and mention the word "merchantability." 
B)  merchantability may be oral. 
C)  fitness for a particular purpose may be oral or written. 
D)  merchantability or fitness for a particular purpose must be conspicuous, which requires that the disclaimer be in a larger type and a different color.

Question 5

Few obstacles to recovery in warranty cases present serious problems to plaintiffs in strict liability actions brought pursuant to Section 402A because this section was drafted largely to avoid such obstacles.

Accepted Answer

A) True 
 B)False

Question 6

The main provision of the Restatement (Third) of Torts, Section 2, recognizes three types of product defects: manufacturing defects, design defects, and failure to warn, but it imposes strict liability only for manufacturing defects.

Accepted Answer

A) True 
 B)False

Question 7

Alice is browsing in a commercial art gallery when she sees a painting that she likes. Arthur, who is the manager of the gallery, tells her that in his opinion the painting is a genuine Leroy Neiman work. Based upon that representation, Alice buys the work for $5,000. She later discovers that the painting is only a cheap copy of the original that is worth no more than $50. Arthur has:

Accepted Answer

A)  breached an express warranty to Alice that the painting is a Neiman work. 
B)  breached the warranty of merchantability. 
C)  not breached a warranty because he was merely expressing his opinion. 
D)  breached an express warranty, the warranty of merchantability, and the warranty of fitness for a particular purpose. 
A)  breached an express warranty to Alice that the painting is a Neiman work. 
B)  breached the warranty of merchantability. 
C)  not breached a warranty because he was merely expressing his opinion. 
D)  breached an express warranty, the warranty of merchantability, and the warranty of fitness for a particular purpose.

Question 8

Horizontal privity pertains to remote sellers within the chain of distribution.

Accepted Answer

A) True 
 B)False

Question 9

Ed buys a car from a friend "as is." The friend tells him, "In my opinion, this car is in excellent mechanical condition." The friend has made an express warranty.

Accepted Answer

A) True 
 B)False

Question 10

A salesperson at Quality Furniture showed Camila a cherry end table and she ordered one like it to be delivered to her home six weeks later. When the table arrived, it was not made of cherry wood, but of pine. If Camila notifies Quality of the breach within a reasonable time, she will be able to recover from Quality .

Accepted Answer

A) True 
 B)False

Question 11

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 12

Under Alternative A of the Code's horizontal privity provision, a corporation may bring a case against the manufacturer of a defective product for breach of the warranty of merchantability.

Accepted Answer

A) True 
 B)False

Question 13

Identify at least four means states have used to limit the punitive damages a plaintiff can collect in a product liability lawsuit.

Accepted Answer

The textbook identifies five means state

Question 14

With respect to horizontal privity, the strict liability in tort of manufacturers and other sellers extends to only buyers, users, and consumers, but not to injured bystanders.

Accepted Answer

A) True 
 B)False

Question 15

If the buyer inspects the goods before entering into the contract, then implied warranties:

Accepted Answer

A)  still apply to any defects. 
B)  will in no circumstances be applicable. 
C)  do not apply to defects that are apparent upon reasonable inspection. 
D)  apply only to defects noted by the buyer upon inspection. 
A)  still apply to any defects. 
B)  will in no circumstances be applicable. 
C)  do not apply to defects that are apparent upon reasonable inspection. 
D)  apply only to defects noted by the buyer upon inspection.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Misuse or abuse of the product is a defense to an action brought under 402A of the Restatement (Second) of Torts.

Accepted Answer

A) True 
 B)False

Question 18

An express warranty may consist of a sample.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A)  may be excluded with the phrase "as is." 
B)  will vest title under Article 2A. 
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 certain circumstances exist. 
A)  may be excluded with the phrase "as is." 
B)  will vest title under Article 2A. 
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 certain circumstances exist.

Exam 22: Product Liability Warranties and Strict Liability

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

Contributory negligence is not a defense to a warranty of merchantability cause of action.

Mark tells Leslie that his sweeper has a four-stage allergen filtration system because he was told that when he bought it. Leslie buys the sweeper from Mark, but it does not have the four-stage allergen filtration system. Is Mark liable for breach of warranty?

In the Womco, Inc. v. Navistar International Corporation case, the court stated the disclaimer of the warranty of:

Few obstacles to recovery in warranty cases present serious problems to plaintiffs in strict liability actions brought pursuant to Section 402A because this section was drafted largely to avoid such obstacles.

The main provision of the Restatement (Third) of Torts, Section 2, recognizes three types of product defects: manufacturing defects, design defects, and failure to warn, but it imposes strict liability only for manufacturing defects.

Horizontal privity pertains to remote sellers within the chain of distribution.

Ed buys a car from a friend "as is." The friend tells him, "In my opinion, this car is in excellent mechanical condition." The friend has made an express warranty.

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 Alternative A of the Code's horizontal privity provision, a corporation may bring a case against the manufacturer of a defective product for breach of the warranty of merchantability.

Identify at least four means states have used to limit the punitive damages a plaintiff can collect in a product liability lawsuit.

With respect to horizontal privity, the strict liability in tort of manufacturers and other sellers extends to only buyers, users, and consumers, but not to injured bystanders.

If the buyer inspects the goods before entering into the contract, then implied warranties:

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

Misuse or abuse of the product is a defense to an action brought under 402A of the Restatement (Second) of Torts.

An express warranty may consist of a sample.

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

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

Introduction to Law

Business Ethics

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

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

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

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 Wills

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