Question 1

Regarding the sale of food or drink,there is an implied warranty that:

Accepted Answer

A)  the food item is of average quality. 
B)  the food item is fit for human consumption. 
C)  that no foreign substances such as a nail or screw will be found. 
D)  all of the above. 
A)  the food item is of average quality. 
B)  the food item is fit for human consumption. 
C)  that no foreign substances such as a nail or screw will be found. 
D)  all of the above.

Question 2

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 3

The warranty of merchantability guarantees that the:

Accepted Answer

A)  party in question is a merchant. 
B)  product is fit for the ordinary purposes for which it is sold. 
C)  product will remain fit for its normal use for the applicable statute of limitations period. 
D)  product can be resold by the buyer if the buyer does not want to keep it. 
A)  party in question is a merchant. 
B)  product is fit for the ordinary purposes for which it is sold. 
C)  product will remain fit for its normal use for the applicable statute of limitations period. 
D)  product can be resold by the buyer if the buyer does not want to keep it.

Question 4

An action for negligence rests upon common law tort principles.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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

Accepted Answer

A) True 
 B)False

Question 7

The requirement of privity of contract to allow recovery in a sales contract has been widely rejected.

Accepted Answer

A) True 
 B)False

Question 8

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 9

A disclaimer or exclusion of the warranty of merchantability will be invalid if:

Accepted Answer

A)  the goods cost $500 or more. 
B)  the defects in the goods are obvious to all buyers. 
C)  it is made at the time of the sale. 
D)  it is not conspicuously set forth in a writing. 
A)  the goods cost $500 or more. 
B)  the defects in the goods are obvious to all buyers. 
C)  it is made at the time of the sale. 
D)  it is not conspicuously set forth in a writing.

Question 10

Under what type of warranty is the seller obligated to fix or replace a defective product within a reasonable time at no cost to the buyer?

Accepted Answer

A)  full 
B)  express 
C)  limited 
D)  implied 
A)  full 
B)  express 
C)  limited 
D)  implied

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

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 14

Unless otherwise agreed,every merchant seller warrants that goods are sold free of any rightful claim by any third party.

Accepted Answer

A) True 
 B)False

Exam 25: Product Liability: Warranties and Torts

Regarding the sale of food or drink,there is an implied warranty that:

The warranty of merchantability guarantees that the:

An action for negligence rests upon common law tort principles.

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

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

The requirement of privity of contract to allow recovery in a sales contract has been widely rejected.

The theories of product liability

A disclaimer or exclusion of the warranty of merchantability will be invalid if:

Under what type of warranty is the seller obligated to fix or replace a defective product within a reasonable time at no cost to the buyer?

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

The federal regulation of express warranties:

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

Unless otherwise agreed,every merchant seller warrants that goods are sold free of any rightful claim by any third party.

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

The Legal Environment of International Trade

Crimes

Torts

Intellectual Property Rights

Cyberlaw

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 Instruments, parties, 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

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

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