Question 1

Implied warranties under the Code:

Accepted Answer

A)  depend on the type of contract or sale entered into. 
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)  depend on the type of contract or sale entered into. 
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

Question 2

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

Question 3

The UCC permits a seller to limit or modify the buyer's remedies for breach of warranty:

Accepted Answer

A)  in all cases. 
B)  except for unconscionable limitations or exclusions of consequential damages. 
C)  in no cases, as this would be contrary to public policy. 
D)  except when the seller seeks to limit the time within which the warranty is effective. 
A)  in all cases. 
B)  except for unconscionable limitations or exclusions of consequential damages. 
C)  in no cases, as this would be contrary to public policy. 
D)  except when the seller seeks to limit the time within which the warranty is effective. B

Question 4

Under the CISG, if at the time of entering into the sales contract, the buyer knew or could not have been unaware of the lack of conformity, the seller is not liable for the warranty of particular purpose, ordinary purpose, or sale by sample or model.

Accepted Answer

A) True 
 B)False

Question 5

An implied warranty exists by operation of law.

Accepted Answer

A) True 
 B)False

Question 6

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

Eric bought a new snowmobile from the North Pole Manufacturing Company.After buying the machine, Eric then modified it 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.Eric now wants to sue North Pole for strict liability.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 9

a.Under the Code, what constitutes an "express" warranty? How does an express warranty arise? 
b.Which of the following would be an express warranty? Explain.
(1)"This is the best computer available in town." 
(2)"This car has new brakes." 
(3)"This sample is just like the one in the box." 
(4)"In my opinion, this is a better video recorder than the one made by RCA." 
(5)"As a mechanic, I think this car is in good running order and should give you no problems for at least three months."

Accepted Answer

a.An express warranty is an explicit und

Question 10

Sandy rented a lawn mower from Scott Rentals.The lawn mower wheel was loose when Sandy picked up the mower.When she began to use it, the wheel fell off, causing the mower to tip over onto her foot.Under what theory can Sandy hold Scott liable for her injuries?

Accepted Answer

A)  Breach of warranty of merchantability. 
B)  Strict liability in tort for a defective condition. 
C)  Both of these are applicable. 
D)  Neither theory is applicable to leases. 
A)  Breach of warranty of merchantability. 
B)  Strict liability in tort for a defective condition. 
C)  Both of these are applicable. 
D)  Neither theory is applicable to leases.

Question 11

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 fungible goods that they be of a quality that exceeds the description and be above average. 
D)  Be 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 fungible goods that they be of a quality that exceeds the description and be above average. 
D)  Be of fair, average quality.

Question 12

An implied warranty is found in the language of a sales contract.

Accepted Answer

A) True 
 B)False

Question 13

The Restatement (Third) of Torts: Products Liability, which supersedes Section 402A of the Second Restatement of Torts, is far more comprehensive than the Second Restatement in dealing with the liability of commercial sellers and distributors of goods for harm caused by their products.

Accepted Answer

A) True 
 B)False

Question 14

George has been in the business of selling collectible model ships for twenty years.Ashley agreed to buy a set of Colonial Era ships if George would also bring her a display case for them.George bought one and sold it to Ashley along with the ships .While placing the ships in the display case, she ran her hand over the back edge of one of its shelves and cut herself severely.The wood was not finished on that side and nails were protruding through the shelf.Can Ashley sue George under strict liability?

Accepted Answer

A)  Yes, because the display case was in an unreasonably dangerous condition. 
B)  Yes, because the display case was defective. 
C)  No, because she had already accepted the display case in its current condition. 
D)  No, because George is not a seller under Sec. 402A. 
A)  Yes, because the display case was in an unreasonably dangerous condition. 
B)  Yes, because the display case was defective. 
C)  No, because she had already accepted the display case in its current condition. 
D)  No, because George is not a seller under Sec. 402A.

Question 15

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 16

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)  None of these. 
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)  None of these.

Question 17

Matt tells Ron that the snow boots he is selling are capable of protection at temperatures of 20° below zero.Ron orders a pair for his trip to Greenland.Upon delivery 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 latter 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 latter 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 18

Which of the following would constitute a defect within the meaning of 402A of the Restatement?

Accepted Answer

A)  A chair with legs designed to be attached with screws and glue but lacking the screws. 
B)  A small car designed to have the fuel tank next to the rear axle. 
C)  A flammable liquid bottled in a container without a warning label to warn users of the flammability. 
D)  All of these are defects within the meaning of 402A. 
A)  A chair with legs designed to be attached with screws and glue but lacking the screws. 
B)  A small car designed to have the fuel tank next to the rear axle. 
C)  A flammable liquid bottled in a container without a warning label to warn users of the flammability. 
D)  All of these are defects within the meaning of 402A.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Article 2A carries over the warranty provisions of Article 2 with relatively minor revisions that reflect differences in:

Accepted Answer

A)  style. 
B)  leasing terminology. 
C)  leasing practices. 
D)  All of these. 
E)  leasing terminology but not leasing practices 
A)  style. 
B)  leasing terminology. 
C)  leasing practices. 
D)  All of these. 
E)  leasing terminology but not leasing practices

Exam 22: Product Liability: Warranties and Strict Liability

Implied warranties under the Code:

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

The UCC permits a seller to limit or modify the buyer's remedies for breach of warranty:

Under the CISG, if at the time of entering into the sales contract, the buyer knew or could not have been unaware of the lack of conformity, the seller is not liable for the warranty of particular purpose, ordinary purpose, or sale by sample or model.

An implied warranty exists by operation of law.

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

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

Sandy rented a lawn mower from Scott Rentals.The lawn mower wheel was loose when Sandy picked up the mower.When she began to use it, the wheel fell off, causing the mower to tip over onto her foot.Under what theory can Sandy hold Scott liable for her injuries?

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

An implied warranty is found in the language of a sales contract.

The Restatement (Third) of Torts: Products Liability, which supersedes Section 402A of the Second Restatement of Torts, is far more comprehensive than the Second Restatement in dealing with the liability of commercial sellers and distributors of goods for harm caused by their products.

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

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

Which of the following would constitute a defect within the meaning of 402A of the Restatement?

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

Article 2A carries over the warranty provisions of Article 2 with relatively minor revisions that reflect differences in:

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Negligence and Strict Liabilitypart Iii: Contracts

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 Remediespart Iv: Sales

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Sales Remediespart V: Negotiable Instruments

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transferspart Vi: Agency

Relationship of Principal and Agent

Relationship With Third Partiespart Vii: Business Associations

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 Corporationspart Viii: Debtor and Creditor Relations

Secured Transactions and Suretyship

Bankruptcypart Ix: Regulation of Business

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

International Business Lawpart X: Property

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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