Exam 21: Warranties and Product Liability

Horizon Corporation makes cell phones.Inez files a product liabil?ity suit against Horizon,alleging a design defect.In deciding whether to hold Horizon liable,the court may consider an alternative design's

The dangers associated with using sharp knives are so commonly known that manufacturers need not warn users of those dangers

Barry buys a bulldozer from Big Sandbox Equipment Company.Barry is unaware that there is a lien against the bulldozer when he buys it.Under the UCC,if the creditor reposes the bulldozer,Barry

Sari buys a new sport utility vehicle (SUV) from Terrific Cars & Trucks,Inc.The most important factor in determining whether an ex?press war?ranty is created is whether

Safe-Rite Company makes electrical cords and other connectors for elec?tronic devices.Tina files a product liability suit against Safe-Rite,alleg?ing a warning defect.In deciding whether to hold Safe-Rite liable,the court may consider

Regional Wood Products Company and Sylvia enter into a contract for a sale of lumber.Regional knows the purpose for which Sylvia will use the goods.Under the UCC,an implied warranty of fitness of a particular purpose arises

Jean buys a bike from Mike's Bike Shop.She wants to make sure that there is a warranty of title.Jean

To succeed in a strict product liability suit,an injured plaintiff must show that a product's defect was the proximate cause of the injury.

John is an art dealer with special expertise in modern art.Rachel comes to John's gallery to purchase a modern art painting as an investment.John shows her several paintings that he says are high quality and will increase in value in the next ten years.John's statement is

Bob is shopping in Carl's Hardware Store when a nail gun in use by Dan,one of Carl's employees,fires without warning and hits Bob in the leg.Carl checks the gun and discovers that it was assembled improperly.Bob files a suit against Eagle Tools,Inc.,the manufacturer of the gun,for product liability,on the ground of strict liability.What are the elements for an action based on strict liability? In whose favor is the court likely to rule and why?

Suppliers are generally required to expect reasonably foreseeable misuses of their products.

Mountain Bikes,Inc.(MBI),and Nero enter into a contract for a sale of a mountain bike.MBI,a merchant who deals in goods of the kind sold,makes implied and express warranties in connection with the sale.The Magnuson-Moss Warranty Act attempts to prevent deception in warranties by

Recovery in a product liability case may be limited when it can be shown that the plaintiff misused the product.

Under the doctrine of strict liability,people are liable for the results of their acts only if their intentions are malicious.

Forest & Field Company makes and leases a backhoe to Zac.Due to a defect attributable to Forest & Field's negligence,Zac is injured in an accident in which his neighbor Aaron is also hurt.In a product liability suit based on negligence,Forest & Field may be liable to

Sarah buys a computer game developed by Al's Gaming Company.One month later,Sarah and several other customers of Al's Gaming Company are sued by George's Fun Games,Inc.because the game from Al's is a direct copy of a copyrighted game sold by George's.Sarah

William steals a valuable collection of baseball cards from Phillip.William then sells the cards to Darrel,who does not know that the cards are stolen.Phillip discovers that Darrel has the cards.Which of the following best describes the rights and liabilities of the parties involved?

A warranty against infringement is a promise by the seller that the prod?uct is free from any patent,trademark,or copyright claims of a third person.

A seller need not use words such as "warrant" to make an express warranty.

A manufacturer's duty of care does extend to the inspection and test?ing of products bought to incorporate in the final product.