Question 1

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 2

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 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Question 5

Plaintiffs suing for damages caused by a defective product are limited to claims against the manufacturer(s) of such goods.​

Accepted Answer

A) True 
 B)False

Question 6

Which of the following must be proven by a plaintiff to recover for strict liability in tort?

Accepted Answer

A) ​negligence of the seller or manufacturer 
B) recklessness of the seller or manufacturer 
C) ​unreasonably dangerous defects in goods that cause harm 
D) ​privity of contract between the manufacturer and the buyer 
A) ​negligence of the seller or manufacturer 
B) recklessness of the seller or manufacturer 
C) ​unreasonably dangerous defects in goods that cause harm 
D) ​privity of contract between the manufacturer and the buyer

Question 7

The warranties of both merchantability and fitness for a particular purpose exist under the Convention on Contracts for the International Sale of Goods (CISG).​

Accepted Answer

A) True 
 B)False

Question 8

An action for negligence rests upon common law tort principles.​

Accepted Answer

A) True 
 B)False

Question 9

Product liability based on privity of contract is accepted by the Uniform Commercial Code.​

Accepted Answer

A) True 
 B)False

Question 10

The statement "This chainsaw is the best one on the market" will most likely create an express warranty.​

Accepted Answer

A) True 
 B)False

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

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.

Question 14

If there is a written contract, a disclaimer of the implied warranty of merchantability must be conspicuous.​

Accepted Answer

A) True 
 B)False

Question 15

The theories of product liability

Accepted Answer

A) ​are mutually exclusive. 
B) are not mutually exclusive. 
C) ​are set forth exclusively in the UCC. 
D) ​are set forth exclusively in the common law. 
A) ​are mutually exclusive. 
B) are not mutually exclusive. 
C) ​are set forth exclusively in the UCC. 
D) ​are set forth exclusively in the common law.

Question 16

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 17

Thelma purchased a used truck from Hall that had been manufactured by International Harvester.To work on the truck engine, Thelma had to have the cab of the truck raised.When it was so raised, the cab fell unexpectedly and fatally injured Thelma.Suit was brought for her wrongful death against Hall and International Harvester.The suit was based on theories of negligence, strict tort liability, and breach of warranty.The defense was raised that there was no liability because the sale to Thelma had been made "as is" and the truck was a used truck.Were these defenses valid?

Accepted Answer

​The "as is" provision of the contract e

Question 18

An express warranty can be disclaimed, even if it was a critical part of the bargain to the buyer.​

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

An auto manufacturer is excused from strict liability if it can be shown the defect was in a component part purchased from a manufacturer.​

Accepted Answer

A) True 
 B)False

Exam 24: Product Liability: Warranties and Torts

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

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

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

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

Plaintiffs suing for damages caused by a defective product are limited to claims against the manufacturer(s) of such goods.​

Which of the following must be proven by a plaintiff to recover for strict liability in tort?

The warranties of both merchantability and fitness for a particular purpose exist under the Convention on Contracts for the International Sale of Goods (CISG).​

An action for negligence rests upon common law tort principles.​

Product liability based on privity of contract is accepted by the Uniform Commercial Code.​

The statement "This chainsaw is the best one on the market" will most likely create an express warranty.​

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. ​

The federal regulation of express warranties:

If there is a written contract, a disclaimer of the implied warranty of merchantability must be conspicuous.​

The theories of product liability

An express warranty can be disclaimed, even if it was a critical part of the bargain to the buyer.​

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

An auto manufacturer is excused from strict liability if it can be shown the defect was in a component part purchased from a manufacturer.​

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

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

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

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

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

Plaintiffs suing for damages caused by a defective product are limited to claims against the manufacturer(s) of such goods.

The warranties of both merchantability and fitness for a particular purpose exist under the Convention on Contracts for the International Sale of Goods (CISG).

An action for negligence rests upon common law tort principles.

Product liability based on privity of contract is accepted by the Uniform Commercial Code.

The statement "This chainsaw is the best one on the market" will most likely create an express warranty.

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.

If there is a written contract, a disclaimer of the implied warranty of merchantability must be conspicuous.

An express warranty can be disclaimed, even if it was a critical part of the bargain to the buyer.

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

An auto manufacturer is excused from strict liability if it can be shown the defect was in a component part purchased from a manufacturer.