Question 1

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. C

Question 2

A defective product can injure intangible economic interests.​

Accepted Answer

A) True 
 B)False  True

Question 3

At every sale, the seller makes an implied warranty that:

Accepted Answer

A) ​the goods are the finest available. 
B) the seller's title is good. 
C) ​the price is the lowest available. 
D) ​the seller is a merchant. 
A) ​the goods are the finest available. 
B) the seller's title is good. 
C) ​the price is the lowest available. 
D) ​the seller is a merchant. B

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

If an express warranty is breached:

Accepted Answer

A) ​the warrantor is not liable if due care was exercised in the manufacture or handling of the product 
B) the seller has no warranty obligation if the buyer had the opportunity to inspect the goods before purchasing them. 
C) ​the warrantor is not liable if (s)he honestly believed that the warranty was true. 
D) ​the warrantor is always liable. 
A) ​the warrantor is not liable if due care was exercised in the manufacture or handling of the product 
B) the seller has no warranty obligation if the buyer had the opportunity to inspect the goods before purchasing them. 
C) ​the warrantor is not liable if (s)he honestly believed that the warranty was true. 
D) ​the warrantor is always liable.

Question 7

Any warranty that does not provide the complete protection of a full warranty is called a warranty in breach.​

Accepted Answer

A) True 
 B)False

Question 8

Sal was at home going through his normal workout when he bent his barbell bar.Sal is a professional bodybuilder, and this fact is obvious from his appearance.Sal went to his local sporting-goods store and was approached by a clerk wishing to assist him.Sal told the clerk about his problem and the clerk asked Sal to wait while an appropriate bar was located.The clerk presented Sal with a bar that the clerk said "is just what you need for your type of weight requirements." Sal paid for the bar and was returning home when he stopped at a health food restaurant.The drink that he ordered had an unusual taste, but the food establishment refused a refund.Sal became ill from the drink, which, as it turned out, had a toxic substance in it.Sal had to be hospitalized.When Sal was able to work out again, he attached the weights to the new bar and lifted the bar under his chin.The bar snapped in the middle and severely cut Sal.Sal is angry about the drink and the barbell.What are the applicable warranties involved? Does Sal have a cause of action?

Accepted Answer

​The sale of food or drink is a sale of

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

A merchant has greater potential warranty liability than does a casual seller.​

Accepted Answer

A) True 
 B)False

Question 11

All of the following apply to strict tort liability except:

Accepted Answer

A) ​strict tort liability is independent of the UCC. 
B) strict tort liability has abolished privity of contract. 
C) ​strict tort liability requires the defect exists at the time of manufacture. 
D) ​strict tort liability requires assumption of the risk. 
A) ​strict tort liability is independent of the UCC. 
B) strict tort liability has abolished privity of contract. 
C) ​strict tort liability requires the defect exists at the time of manufacture. 
D) ​strict tort liability requires assumption of the risk.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

In applying the "foreign substance/natural substance" liability test in the sale of food or drink, some courts refuse to impose warranty liability if the thing in the food that caused the harm was naturally present.​

Accepted Answer

A) True 
 B)False

Question 14

Whenever a sale of goods is made, certain warranties are implied unless they are expressly excluded.​

Accepted Answer

A) True 
 B)False

Question 15

The sale of food or drink at a restaurant carries all of the following implied warranties except:

Accepted Answer

A) ​the food or drink will be of average quality. 
B) the food or drink will be fit for human consumption. 
C) ​the food or drink will contain no foreign substances such as a nail or screw. 
D) ​the food or drink will meet the customer's expectations. 
A) ​the food or drink will be of average quality. 
B) the food or drink will be fit for human consumption. 
C) ​the food or drink will contain no foreign substances such as a nail or screw. 
D) ​the food or drink will meet the customer's expectations.

Question 16

How do the warranty provisions under the CISG compare to the provisions of the UCC?

Accepted Answer

A) ​In most instances, the standards are the same. 
B) In all instances, the standards are the same. 
C) ​The CISG standards are stricter when compared to the UCC standards. 
D) ​The standards are completely different. 
A) ​In most instances, the standards are the same. 
B) In all instances, the standards are the same. 
C) ​The CISG standards are stricter when compared to the UCC standards. 
D) ​The standards are completely different.

Question 17

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 18

Negligence and fraud are easy to prove in a mass production world.​

Accepted Answer

A) True 
 B)False

Question 19

Ordinarily, a seller's opinion about the good(s) cannot be treated as a warranty.​

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 24: Product Liability: Warranties and Torts

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

A defective product can injure intangible economic interests.​

At every sale, the seller makes an implied warranty that:

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.​

If an express warranty is breached:

Any warranty that does not provide the complete protection of a full warranty is called a warranty in breach.​

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

A merchant has greater potential warranty liability than does a casual seller.​

All of the following apply to strict tort liability except:

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

In applying the "foreign substance/natural substance" liability test in the sale of food or drink, some courts refuse to impose warranty liability if the thing in the food that caused the harm was naturally present.​

Whenever a sale of goods is made, certain warranties are implied unless they are expressly excluded.​

The sale of food or drink at a restaurant carries all of the following implied warranties except:

How do the warranty provisions under the CISG compare to the provisions of the UCC?

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

Negligence and fraud are easy to prove in a mass production world.​

Ordinarily, a seller's opinion about the good(s) cannot be treated as a warranty.​

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

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 Environment 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

Filters

A defective product can injure intangible economic interests.

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

Any warranty that does not provide the complete protection of a full warranty is called a warranty in breach.

A merchant has greater potential warranty liability than does a casual seller.

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

In applying the "foreign substance/natural substance" liability test in the sale of food or drink, some courts refuse to impose warranty liability if the thing in the food that caused the harm was naturally present.

Whenever a sale of goods is made, certain warranties are implied unless they are expressly excluded.

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

Negligence and fraud are easy to prove in a mass production world.

Ordinarily, a seller's opinion about the good(s) cannot be treated as a warranty.

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