Exam 20: Warranties and Product Liability

Cruisin' Autos, Inc., sells cars to consumers. To avoid liability for oral express warranties, each sales agreement should note that a car is sold

Sellers are required to give express written warranties for consumer goods.

Coffee Products, Inc., makes espresso machines and sells one to Diners Café. An employee working at the coffee bar is injured when the machine malfunctions. If the injury occurred as a result of a misrepresentation about the product, Coffee is most likely liable for

Because a warranty is a promise by the seller, the law does not recognize implied warranties .

Under the rule of strict liability in tort, the basis of liability does not include the suppliers of component parts because the manufacturer had to work with those parts to create the final product.

HandiTools, Inc., sells power tools, power tool parts, and related supplies under "full" warranties. Under the Magnuson-Moss Warranty Act, this means that HandiTools must provide

Implied warranties cannot arise from a "course of dealing."

An implied warranty of merchantability means that the goods are reasonably

Warranties are meant to protect buyers.

The brakes on Dirk's Tour de Valle bicycle malfunction, but he continues to ride it because he likes the thrill of the unstoppable acceleration. One night, enjoying a fast downhill pace, he speeds through a stop sign and is struck by a truck. In Dirk's suit against Tour de Valle, the bike maker can raise the defense of

A product has a manufacturing defect when the product departs from its intended design.

Chord Guitars Inc. sells guitars and other stringed instruments. A Chord salesperson says to a potential customer, "This Chord is the best guitar you'll find anywhere, even online." This statement is

MotorCo Inc. makes and sells auto parts. On one MotorCo box is a label that reads "Contains one gross (144) sparkplugs, assorted sizes." This statement is

Goods cannot be merchantable if they are unfit for a buyer's or lessee's particular purpose.

Under the UCC, an implied warranty of merchantability arises

DIY-Haul, Inc., makes , sells, and leases trucks. Ed files a product liability suit against DIY-Haul, alleging a design defect. To win a design defect case, Ed must show

When a person is injured by a product there is an automatic claim under strict liability.

RecEquip Stores and SportsPower Products, Inc., enter into a contract for a sale of trampolines. SportsPower Products is a merchant who deals in goods of the kind sold. Based on these facts, under the UCC an implied warranty of merchantability arises

In most sales, sellers do not warrant that they have the right to transfer title to the goods sold.

A seller or lessor is not liable for any latent defects that ordinary inspection would not reveal.